Swiggy to sell stake in Rapido to Prosus, WestBridge for Rs 2,399 Cr
The news comes almost two months after Swiggy said it was re-evaluating its investment in Rapido after the ride-hailing firm began piloting its food-delivery business.
Foodtech major Swiggy will sell its stake in Roppen Transportation Services—the parent entity of Rapido—to consumer internet firm Prosus and WestBridge Capital for Rs 2,399 crore.
In 2022, Swiggy led a $180 million Series D round in Rapido, investing about Rs 950 crore, according to Tracxn. This means the firm is earning a 2.5X return on its investment.
According to regulatory filings, Swiggy’s board approved the sale of 10 equity shares and 1,63,990 Series D compulsorily convertible shares (CCPS) to MIH Investments One B.V.—a venture capital fund managed by Prosus Ventures—for Rs 1,968 crore.
The firm’s board also approved the sale of 35,958 Series D CCPS to Setu AIF Trust, a fund managed by WestBridge, for Rs 431.5 crore.
Prosus currently holds a 6.1% stake in the ride-hailing firm and a 23.31% stake in Swiggy, as of June 30.
The news comes almost two months after Swiggy, in its first-quarter shareholder letter, disclosed that it is actively re-evaluating its stake in Rapido after the latter had disclosed plans of entering the food delivery segment currently dominated by Swiggy and Zomato.
In August, Rapido rolled out its food delivery app, Ownly, catering to selected areas in Bengaluru.
“As a shareholder, we are extremely happy with their success and value creation, but do acknowledge a potential conflict of interest that may arise in the future. Our ~12% minority stake has appreciated significantly since our investment (basis incoming interest), and we are actively re-evaluating our investment due to the above developments,” Swiggy had said in the letter.
The Sriharsha Majety-led firm also said that monetising its investment in Rapido will also expand its cash balances.
Edited by Kanishk Singh