Swiggy clears Rapido stake sale worth Rs 2,399 crore, sets up Instamart subsidiary

New Delhi: Swiggy has approved the divestment of its holding in bike-taxi operator Rapido through two separate transactions with a combined value of Rs 2,399 crore, according to news reports.

The company will offload shares valued at Rs 1,968 crore to Dutch-based MIH Investments, part of Prosus, while an additional Rs 431 crore worth of shares will be transferred to Setu AIF Trust, managed by Westbridge Capital LLC and registered with SEBI.

The transaction is categorised as a related-party deal since Prosus Group and its affiliates remain Swiggy’s largest shareholders with a 23.31% stake.

Overall, the company is selling its entire 12% stake in Rapido for about Rs 2,400 crore, implying a valuation of Rs 20,330 crore (around $2.3 billion) for the mobility platform. This reflects a sharp increase from Rapido’s last funding round in 2024, which had pegged its valuation at $1.1 billion. The divestment represents one of Swiggy’s largest portfolio exits in recent years.

Alongside the transaction, Swiggy’s board approved the transfer of quick-commerce operations under the Instamart brand to a new entity, Swiggy Instamart, which will be a wholly owned subsidiary.

On the market front, Swiggy shares closed flat at Rs 449.95 on the NSE on the day of the announcement. However, earlier in the week, the stock slipped as much as 3% after brokerage firm JM Financial downgraded it to “reduce” from “hold” and lowered its price target to Rs 420 from Rs 460.

The brokerage cited concerns over the company’s weak balance sheet and called for corrective measures, amid speculation about the divestment to bolster financial strength.