Swiggy's Rapido stake sale to help up cash kitty, but concerns remain

The stake sale boosts Swiggy's cash reserves as it shifts Instamart into a new subsidiary to prepare for an inventory-led model amid rising competition

Swiggy made two important announcements on September 23. In April 2022, Swiggy had acquired a 12 per cent stake in Rapido (unlisted) for ₹1,000 crore and it announced that it has sold that 12 per cent stake in Rapido to Prosus and Westbridge to raise ₹2,400 crore.

 

This monetisation raises the cash balances of Swiggy and gives it financial resources to continue to invest in its quick commerce (qcom) Instamart business. Subject to shareholder approval, Swiggy has also approved the sale and transfer of Instamart to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary, incorporated in India. Instamart is