Swiggy to sell Rapido shares worth ₹2,400 cr to MIH Investments, WestBridge

Bengaluru-based firm Swiggy's board has approved a stake sale in the ride-hailing startup Rapido to Netherlands-based MIH Investments One BV.

 

The food delivery major will sell 10 equity shares and 163,990 Series D compulsorily convertible preference shares (CCPS) to MIH Investments for about ₹1,968 crore, and 35,958 Series D CCPS to WestBridge for ₹431 crore, according to an exchange filing.

 

With the planned stake sale to MIH Investments and WestBridge, Swiggy is set to raise around ₹2,399 crore from its holdings in Rapido.

 

MIH Investments One BV, part of the Prosus group, which holds a 23.31 per cent stake in Swiggy through its affiliates, invested ₹250 crore in Rapido during its Series E funding round in February 2025, acquiring about a 2.9 per cent stake. Prosus already owned around 3-4 per cent in Rapido prior to this investment. 

Rapido entered the food delivery business in August 2025 with the launch of its service Ownly in Bengaluru, following groundwork laid in June with a fixed-fee model proposal for restaurants. This move positions Rapido as a direct competitor to Swiggy.

In April 2022, Swiggy invested approximately ₹1,020 crore in Rapido, acquiring a 12 per cent stake in the company. This investment was part of a Series D funding round that valued Rapido at around $827 million. Swiggy led this round, marking it as the company's largest single investment in a startup at that time. The deal was structured through the acquisition of 10 equity shares and 199,948 Series D CCPS in Rapido's parent company Roppen Transportation Services Private Limited.

 

Rapido was founded in 2015 and operates as a bike taxi platform across multiple Indian cities. The company expanded into auto-rickshaw services and, more recently, into quick commerce and food delivery services. Over the years, Rapido has raised funding from several investors, including WestBridge Capital and existing venture capital firms, to expand its operations and diversify its service offerings.

 

Recently, JM Financial analysts noted that food and grocery delivery platform Swiggy may need a fundraising round exceeding $500 million to support its Instamart quick commerce division amid rising competition from Zomato’s Blinkit. They highlighted that the company’s current financial resources may be insufficient for the capital-intensive market battle ahead. Despite Instamart reporting over 100 per cent year-on-year gross order value growth in recent quarters, it has been losing relative market share to Blinkit, which has grown more than 130 per cent.