In a major strategic shift, Swiggy, India’s food delivery powerhouse, is planning to sell its 12% stake in Rapido, the fast-growing two-wheeler ride-hailing platform. Reports suggest that Dutch investment giant Prosus NV is in talks to acquire the largest chunk of this stake, with a potential investment ranging from $150 to $180 million.
This move reflects a growing realization that Rapido is no longer just a partner—it’s now a competitor, disrupting the very market Swiggy operates in. In this article, we will delve into why Swiggy is selling its Rapido stake, the rising competition between the two, the role of Prosus NV, and what this means for the future of India’s food and mobility sectors.
Credits: The Financial Express
From Strategic Partnership to Rivalry
Back in April 2022, Swiggy had invested $180 million for a 12% stake in Rapido. At the time, the deal was seen as a win-win strategy where Rapido’s network of riders would also serve as delivery couriers for Swiggy, thereby boosting last-mile efficiency. The relationship was positioned as a strategic collaboration aimed at improving Swiggy’s operational reach.
However, the landscape changed when Rapido launched its food-delivery service, Ownly, targeting restaurants in Bengaluru and undercutting giants like Swiggy and Zomato by charging approximately half the commission fee. This pivot transformed Rapido from a strategic ally into a formidable competitor, forcing Swiggy to rethink its approach.
Valuation Surge: A Profitable Opportunity
Swiggy’s original $180 million investment in Rapido is now poised to yield significant returns. Current estimates place Rapido’s overall valuation between $2.5 billion and $2.7 billion, which makes Swiggy’s 12% stake worth over $320 million (about ₹2,825 crore).
This marks a sharp increase from Rapido’s valuation of $1.1 billion during its $200 million Series E round led by WestBridge Capital in September last year. Investors and market watchers are closely tracking the stake sale, as it reflects the growing appetite for mobility-driven solutions that combine ride-hailing and food delivery.
Prosus and Other Investors Eye the Opportunity
Among the interested parties, Prosus NV, a global investment powerhouse, is reportedly the front-runner to buy Swiggy’s stake. Existing investors, including private equity firms and family offices, are also being approached by Swiggy’s appointed advisor, Avendus Capital, to participate in this process.
As of June 2025, Prosus already holds 2.7% of Rapido, while Nexus Venture Partners and WestBridge Capital own 9.9% and 19%, respectively. The co-founders—Pavan Guntupalli and Aravind Sanka—each hold 4.8%, while Rishikesh S.R. holds 1.8%. Other heavyweight investors, such as TVS Motor, Yamaha Motor, and Shell International BV, are also expected to raise their stakes as Rapido continues its aggressive expansion.
Rapido’s Growing Market Footprint
Rapido’s food delivery venture, Ownly, is already causing ripples in the Bengaluru market. With substantially lower commissions for partner restaurants compared to industry titans Swiggy and Zomato, Ownly is gaining significant traction.
Moreover, Rapido has created a wholly owned subsidiary called Ctrlx Technologies dedicated solely to its food-delivery business, signaling its long-term intent to compete directly in the fast-growing Indian food-tech space.
Industry sources suggest that investors are eager to double down on Rapido, anticipating an even more aggressive growth trajectory. Rapido’s success is expected to accelerate further, especially with prospects of going public in the near future.
Credits: Moneycontrol
What Lies Ahead?
Swiggy’s decision to exit its stake in Rapido marks a calculated realignment of its strategic priorities. As the food delivery and mobility landscape in India evolves, partnerships that once seemed synergistic can quickly turn competitive.
For Prosus and other investors, this is a golden opportunity to expand their footprint in a high-growth, disruptive sector. Meanwhile, for Swiggy, it is about focusing resources on core businesses while monetizing a high-value investment at an opportune time.
This unfolding saga will be one to watch, as both Swiggy and Rapido continue to shape India’s dynamic tech ecosystem.
