New Delhi, Sept. 24 -- Bengaluru-headquartered food and grocery delivery company Swiggy Ltd has agreed to sell its entire stake in Rapido to Dutch technology investor Prosus and Indian private equity firm WestBridge Capital.

Swiggy will sell its entire 12% stake in Rapido, operated by Roppen Transportation Services Pvt Ltd, for Rs 2,400 crore (around $270.6 million), according to its stock-exchange filings. The sale includes both equity and preference shares.

Prosus, a common investor in both Swiggy and Rapido, will buy shares worth about Rs 1,968 crore while WestBridge, an existing Rapido investor, is buying shares worth around Rs 432 crore.

The transaction is subject to approvals from the Competition Commission of India and Swiggy's shareholders.

Swiggy had invested about Rs 950 crore (about $124 million) in Rapido as part of its $180-million Series D round in April 2022. This means Swiggy is scoring two-and-a-half times return on its investment in Rapido in three-and-a-half years. That translates to an annualised return of about 31%, according to VCCircle estimates.

Prosus owns about 23% of Swiggy, so the deal counts as a related-party transaction, though Swiggy said it was carried out on fair terms.

Swiggy also said that the sale was a strategic decision to realise its investments for shareholders' benefit. The sale will improve Swiggy's cash reserves in a competitive quick commerce market. As of June 2025, the company had Rs 5,354 crore in cash and equivalents.

The stake sale comes after Rapido, thus far a ride-hailing platform, launched a food delivery pilot in Bengaluru this August through its subsidiary Ownly. The pilot began in three neighbourhoods and marked Rapido's entry into a segment long dominated by Swiggy and Zomato.

Rapido entered the unicorn club last year when it raised $200 million in a Series E round led by WestBridge at a valuation of $1.1 billion. The PE firm had also invested in Rapido's Series D round in 2022. Prosus invested in Rapido earlier this year.

Instamart spin-off

Swiggy has also set in motion a restructuring of its quick commerce arm. The company is hiving off Instamart into a step-down subsidiary, Swiggy Instamart Pvt Ltd, through a slump sale.

The transfer covers all assets, liabilities, intellectual property, contracts, and employees tied to the grocery delivery unit, with the consideration based on book value. The deal is expected to close after the third quarter of FY26, subject to shareholder approval.

Instamart has emerged as a core part of Swiggy's business. The business generated Rs 21,296 crore in revenue in the financial year ended March 2024, about a fourth of Swiggy's standalone topline.

However, Instamart carried a negative net worth of nearly Rs 2,977 crore at the end of March 2025, primarily because of the heavy investments it made to build scale in quick commerce. Moving Instamart into a separate entity gives Swiggy greater flexibility in managing the unit and potentially raising capital for it independently.

Swiggy said the reorganisation provides Instamart with a dedicated corporate structure, clearer accountability, and better alignment with its long-term strategy.

Published by HT Digital Content Services with permission from VC Circle.