Food delivery platform Swiggy has announced that its board has approved the sale of its stake in Rapido, the bike taxi service operated by Roppen Transportation Services, for a total of nearly Rs 2,400 crore. The decision comes as Rapido continues to grow as a strong competitor to Ola and Uber in India, especially in the two-wheeler taxi market.
According to a regulatory filing, Swiggy will sell 10 equity shares and 1,63,990 Series D Compulsorily Convertible Preference Shares in Rapido to MIH Investments One BV, a Netherlands-based company. This transaction is valued at Rs 1,968 crore. Swiggy stated that the deal was done on an “arm’s length” basis and is intended to unlock value for the company and its shareholders. Both MIH Investments One BV and MIH India Food Holdings BV are part of the Prosus group and share the same ownership.
In a separate development, Swiggy’s board also approved selling 35,958 Series D CCPS in Rapido to Setu AIF Trust, a fund managed under SEBI’s Alternative Investment Funds rules and backed by Westbridge. This deal, worth Rs 431.49 crore, does not involve any related party transactions.
Alongside these sales, Swiggy has also announced a major internal change. The company is transferring its quick-commerce business Instamart, along with all its assets and liabilities, to a newly created subsidiary called Swiggy Instamart Private Limited. This move will be carried out as a slump sale, pending approval from shareholders.
Swiggy stated that this restructuring will help the company focus more effectively on the fast-growing Instamart vertical. By placing Instamart under a separate business entity, Swiggy expects to improve operational efficiency, better align strategies, and provide more flexibility in resource management.
With these decisions, Swiggy is aiming to strengthen its financial position by monetising its earlier investment in Rapido, while also preparing Instamart for long-term growth. The company said both steps are part of a strategy to create more value for its stakeholders and sharpen its focus in India’s fast-changing delivery and quick-commerce sectors.
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