'Not going to wait and watch': Swiggy CEO on new opportunities in food delivery amid Rapido’s entry
Swiggy reportedly holds between 12-13% stake in the ride-hailing platform, both of which are portfolio companies of Dutch consumer internet company Prosus.
Swiggy’s co-founder and CEO Sriharsha Majety said the company will rush in to any new opportunities in the food-delivery segment that can grow the category further.
Speaking at Prosus’ Capital Markets Day 2025, Majety, when asked about Rapido’s entry into the food-delivery segment said, “It is not easy to just get an opening that you can go take a home run with. I think it will be interesting to see if there’s an alternate take to food delivery that can grow the category, because we are waiting for some more growth as well.”
The food-tech major invested in the ride-hailing platform back in 2022, leading its $180 million Series D funding round. According to reports, the company owns between 12-13% stake in Rapido.
As part of diversifying services being offered on its platform, Rapido is looking to enter the food-delivery space. According to recent reports, the company is planning to offer significantly lower commission rates to restaurants compared to both Swiggy and Zomato.
The food-tech giants have been criticised by restaurant partners on social media platforms for exorbitant commission rates levied on food orders. The National Restaurant Association of India (NRAI) has also criticised the high commissions charged that has impacted profitability of restaurants.
Majety also pointed out that a number of players that have thrown their hats in the ring since Swiggy first entered the food delivery segment.
“There were 20 players in 2015 (in the food delivery segment). In 2017, Uber and Ola threw their hat in the ring. In 2019, Amazon threw their hat in the ring. In 2021, there was an entry of like a more decentralised network called the ONDC that was about to come in India. And credit to us and Zomato for having seen these threats.“
He also added that Swiggy has the technology prowess to enter any new category in a short period of time, recalling how the company responded to Zepto’s Cafe offerings with Snacc. “It took us about 16 days to put the application out there. If there is an interesting opening, we’ll be out there in weeks, trying our own luck with the customer to grow the category. We are not going to wait and watch.”
Majety also noted how the growth in food-delivery is very different from the growth observed in quick commerce today. The company is trying to keep pace with “customer imagination.”
“I think consumers were surprised to find like batteries in year one. Consumers weren't surprised to find bed sheets on the platform last year. So I think consumer imagination also expands quite crazily as platforms get this aid in.”
He also added that almost all the players operating in this segment are figuring out what the boundaries of quick commerce are. Majety also said that quick commerce in India today is larger than food delivery and “it's not showing any signs of slowing down.”
Prosus, which holds a 24.8% stake in the Instamart owner, had said in its annual report that Swiggy’s growth last last year in the food delivery and quick commerce segment came at the expense of profitability due to the expansion of its dark store network and amid heightened competition
Ashutosh Sharma, India Head—Investments and M&A at Prosus said that with three of its portfolio companies hitting liquidity, the firm has unlocked about $4 billion of cash gains. “But this is not the end. We have many companies who are mature and ready to list and therefore will add to this gain number in the short-term.”
Prosus, which is owned by South African technology investor Naspers, today manages a portfolio of $6.5 billion in India, Sharma added.
Edited by Jyoti Narayan