On September 23, 2025, the board of directors of Swiggy Ltd has approved the sale of entire stake in Roppen Transportation Services Private Limited (Rapido), generating a total of ₹2,399.5 crore.
The foodtech giant, Swiggy had decoded to divest its holdings for ₹1,968 crore to MIH Investments One B.V., a Netherlands-based entity under the Prosus Group, and ₹431.5 crore to Setu AIF Trust and its affiliate, WestBridge Capital.
The transaction includes the transfer of 10 equity shares and 1,99,948 Series D Compulsorily Convertible Preference Shares in Roppen Transportation Services Pvt. Ltd., the parent company of Rapido.
Swiggy had invested approximately $120 million (around ₹1,020 crore) in Rapido back in 2022, acquiring a 12% stake. This sale yields a return of more than 2.3 times on that investment in under 4 years. Notably, WestBridge is now the largest shareholder in Rapido following this deal.
The divestment is part of Swiggy’s strategic move to unlock value and streamline operations amid a highly competitive market. The transaction is subject to regulatory clearances, including approval from the Competition Commission of India and Swiggy’s shareholders.
This move also helps Swiggy steer clear of potential conflicts of interest, especially as Rapido expands into the food delivery segment, an area where Swiggy is a dominant player.
Also Read: Swiggy Increases Platform Fee to ₹15, Marking the Third Hike in 3 Weeks; Share Price in Focus
In another major restructuring move, Swiggy’s board has approved the transfer of its quick-commerce business, Instamart, to a newly created wholly owned subsidiary, Swiggy Instamart Pvt. Ltd. The spin-off will be executed via a slump sale, with a one-time cash consideration based on the book value of assets and liabilities on the effective date.
The restructuring comes at a time when Swiggy is reportedly looking to raise at least $500 million (approximately ₹4,400 crore) to support its growth plans and ease liquidity pressures. According to JM Financial, further delays in raising capital could pose risks, particularly if operational challenges or intensifying competition erode the company’s financial strength.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 24, 2025, 2:50 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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