Swiggy to Sell Stake in Rapido to Prosus, WestBridge for ₹2,399 Crore

India’s food delivery giant Swiggy is making headlines again — but this time, not for your dinner order. The company has finalized a deal to sell its stake in bike taxi and mobility platform Rapido to Prosus and WestBridge Capital for ₹2,399 crore. This marks a significant realignment in India’s startup ecosystem, with global and domestic investors reshaping the future of last-mile mobility.

The deal underscores not only the evolving dynamics of Swiggy’s business strategy but also the rising importance of Rapido in India’s competitive ride-hailing space.

Why Is Swiggy Exiting Rapido?

Swiggy has been under increasing pressure to focus on profitability across its core verticals — food delivery and Instamart, its quick-commerce arm. While its investment in Rapido helped strengthen last-mile logistics, insiders suggest that divesting the stake will free up resources for growth in its core markets.

This strategic exit demonstrates Swiggy’s move toward streamlining operations, preparing for its own IPO plans, and reducing financial risks.

(Learn how Swiggy is shaping India’s quick-commerce future with Instamart.)

Rapido’s Rising Role in Indian Mobility

Founded in 2015, Rapido has grown rapidly as a two-wheeler ride-hailing service, particularly in Tier-2 and Tier-3 cities where affordability is critical. Its unique proposition of offering bike taxis at low fares has helped it compete against heavyweights like Ola and Uber.

With fresh backing from Prosus and WestBridge, Rapido is expected to:

• Expand aggressively into new cities.
• Strengthen its fleet partnerships.
• Invest in electric mobility solutions.

The Deal Breakdown

• Stake Value: ₹2,399 crore
• Buyers: Prosus, one of the world’s largest tech investors, and WestBridge Capital, a leading private equity firm.
• Seller: Swiggy, exiting to refocus on food delivery and quick commerce.

Analysts note that the deal could significantly boost Rapido’s market valuation, while giving Prosus greater exposure to India’s high-growth mobility space.

(Explore how Prosus has been betting big on India’s tech startups.)

Industry Reactions

Industry experts have pointed out three key takeaways:

1. Swiggy’s Strategy: The exit reflects Swiggy’s priority to focus on building a path to profitability before its IPO.
2. Rapido’s Momentum: With additional capital, Rapido could challenge Ola and Uber more directly in smaller cities.
3. Investor Confidence: Prosus and WestBridge doubling down signals strong investor trust in India’s mobility sector.

Bigger Picture: Impact on India’s Startup Ecosystem

The move highlights a broader shift in India’s startup ecosystem where companies are moving from aggressive diversification to sharper focus on profitability and scalability. Swiggy’s decision may inspire other unicorns to reevaluate non-core investments.

For Rapido, the infusion of capital and expertise could mean a stronger presence in electric vehicles and sustainable commuting — aligning with India’s push for cleaner urban transport.

Conclusion

Swiggy’s ₹2,399 crore stake sale in Rapido marks a turning point in India’s food delivery and mobility sectors. While Swiggy doubles down on food and commerce, Rapido gears up for its next growth phase with heavyweight investors backing its vision.

This deal, in many ways, reflects the maturity of India’s startup ecosystem — where strategic exits, investor shifts, and focused growth are becoming the new normal.