Swiggy plans exit amid conflict of interest as Rapido ventures into food delivery.
Global consumer internet conglomerate Prosus is in advanced discussions to invest ₹1,750 crore in Indian ride-hailing startup Rapido, with plans to significantly increase its stake, according to a report by Moneycontrol.
Currently, Prosus holds a modest 3–4% stake in Rapido. However, the investor has become increasingly bullish on the company, encouraged by Rapido’s rapid growth trajectory, which has reportedly outpaced competitors Ola and Uber in key markets. The startup’s recent expansion into food delivery has further diversified its offerings and revenue streams, making it an even more attractive investment opportunity.
As per the report, the ongoing negotiations value Rapido at $2.5–$2.7 billion-a sharp rise from its $1.1 billion valuation in December 2024, reflecting strong investor confidence in its evolving business model.
At the same time, Prosus-owned Swiggy is preparing to exit its 12% stake in Rapido, citing a conflict of interest after Rapido’s entry into the food delivery space. Swiggy, which had invested $120 million in Rapido back in 2022, is reportedly looking to sell its stake for ₹2,500 crore, realizing a significant return on investment.
The move marks a pivotal shift in Rapido’s investor landscape, with Prosus potentially playing a more central role in the startup’s future, while Swiggy steps away amid growing competition in the hyperlocal delivery segment.
