By Neha Yadav
Copyright startuppedia
“Food ordering and grocery delivery platform Swiggy has finalised the offloading of its entire 12 percent holding in ride-hailing firm Rapido, worth Rs 2,399 crore.Advertisment The shares are now being acquired by Rapido’s existing investors, Prosus and Westbridge Capital, as per an exchange filing on September 23, 2025. Of the overall amount, Prosus bought shares valued at Rs 1,968 crore ($223 million), and Westbridge Capital bought the remaining portion for Rs 431.5 crore ($49 million). The deal is a fully secondary sale, i.e., the funds go to Swiggy, not into the balance sheet of Rapido. Yet, according to sources, Rapido is also preparing for a primary fundraise at a valuation of $2.7–3 billion, a stark increase from its previous valuation of $1.1 billion. Read More: Indore Founders Launch “Superpower Patches” That You Can Slap On To Instantly Sleep, Exercise, Work, & Focus Better An expected move by Swiggy Swiggy’s pull-out from Rapido was on the cards for a while. Early this year, the company had announced that it would sell off its holding because of an apparent conflict of interest, as Rapido ventured into the food delivery business. Moneycontrol had initially reported on August 6 that Swiggy was considering selling out and could reap around Rs 2,500 crore. On August 28, the company was also reported by the publication to be ready to invest $200 million in Rapido in a combination of primary and secondary capital. For Swiggy, the sale of stake has been strategically timed. Read More: Meet India”s 1st Sports Social Media App “Dugout” Built By A Hyderabad-based IIT-IIM Alumnus; Gets 2 Lakh+ Downloads In Just A Year Strategic move amidst growing competition The company is fighting fierce competition in food delivery and quick commerce, with rushing competition and customer demands. In the June quarter (Q1FY26), Swiggy had cash and equivalents of Rs 5,354 crore. The new cash inflow of Rs 2,399 crore from the Rapido transaction will further enhance its cash holdings, providing it with more firepower to compete, fund growth, and deal with profitability challenges in a competitive market. Read More: Delhi Startup Founded By 2 Childhood Friends Lets You Exercise On Water – Becomes First-Ever Floating Fitness Brand In India Rapido”s growth The deal, for Rapido, showcases the trust investors have in its expanding business model. The Bengaluru-based company, which began as a bike taxi aggregator, has consistently expanded into auto rides and food deliveries, establishing itself as a strong player in the urban mobility and logistics segment. The imminent primary round at a multi-billion-dollar valuation may spur it to further growth and cement its position among India’s top mobility startups. The deal is called a win-win. Swiggy has made a clean exit from Rapido, whereas Prosus and Westbridge have increased their bet on the long-term growth of the company. Read More: Bihar Friends Clock Rs 1.5 Cr Monthly By Selling Flavoured & Raw Makhanas In Bulk To 41+ Indian & International Food Brands”
