Swiggy shares slide over 1% after ₹2,400-crore Rapido stake sale

Food delivery platform and quick-commerce service provider Swiggy saw its shares fall by nearly 1% following the company’s strategic moves to sell a 12% stake in Rapido for ₹2,400 crore. The foodtech company has also reorganised its quick-commerce arm, Instamart, as part of a slump sale to a wholly-owned subsidiary, encompassing all relevant business operations and assets.

At the time of reporting, its share price was down by 0.87%, to ₹445.30. Its 52-week high was ₹617.30, while its 52-week low was at ₹297. The food delivery service provider’s market capitalisation stands at ₹1.02 lakh crore. 

In an exchange filing, Swiggy announced that the board had approved the sale and transfer of its quick-commerce business under the brand name Instamart, along with all relevant assets, liabilities, permits and licenses, records, intellectual property, employees, and contracts, to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary of the parent company, as a going concern through a slump sale.

Swiggy also said on Tuesday that its board had approved a proposal for the sale of 10 equity shares and 1,63,990 Series D preference shares it holds in Rapido to Dutch investment firm Prosus Ventures for ₹1,968 crore, as well as 35,958 Series D preference shares to Westbridge for about ₹432 crore.

According to the exchange filing, Swiggy said the sale is a strategic decision to help realise its investments for the benefit of the company and its shareholders. Swiggy had acquired a 15% stake in Rapido in FY23 for ₹950.5 crore, whereas Prosus Ventures holds about 23.31% stake in Swiggy. However, when Rapido raised ₹250 crore from Prosus Ventures and ₹125 crore from venture capital firm Nexus Ventures in FY2025 as part of an extended Series E funding round, Swiggy’s shareholding in Rapido was diluted to approximately 12%.

Swiggy has achieved a return of over 150% on its investment in Rapido. It was earlier reported that Swiggy was offloading its entire 12% stake in Rapido for up to ₹2,500 crore, making a full exit from the three-year investment it made in the company.

The development comes at a time when Rapido has forayed into the food delivery business, prompting Swiggy to monetise its stake to avoid a potential conflict of interest, something it had publicly stated last month.

Meanwhile, Swiggy’s losses have widened. While the food delivery business remained profitable—growing 10% sequentially to ₹1,799 crore in the first quarter of the current year—it has been burning cash to expand its quick-commerce offering, Swiggy Instamart. The quick-commerce segment posted a loss of ₹896 crore in the same period.

Swiggy has cash and cash equivalents of ₹5,354 crore as of June 30, and the ₹2,400 crore from the stake sale will be added to this cash balance. It spent much of the ₹319 crore in the quarter on capital expenditure, funding the previous quarter’s dark store expansion, while the remainder was allocated to other dark store additions to boost its quick-commerce business.