Swiggy is actively reassessing its stake in Rapido as the ride-hailing platform’s entry into food delivery signals a potential clash of interests. The food and grocery delivery major currently holds about a 12% stake in Rapido, an investment made in 2022 that has since appreciated significantly, now valued at roughly $120 million (₹1,020 crore) based on Rapido’s estimated valuation of over $1 billion (₹8,500 crore).
Rapido’s recent pivot towards food delivery threatens to disrupt the long-standing Swiggy-Zomato duopoly, stirring up the competitive dynamics of India’s quick-commerce and delivery ecosystem. The move comes at a time when restaurant partners have increasingly voiced dissatisfaction over high platform commissions, preferential algorithms, and rising customer acquisition costs, opening the door for new players with alternate models.
In a recent shareholder communication, Swiggy’s leadership, including CEO Sriharsha Majety, described the company’s stance as “super agile and paranoid,” signalling a strategic alertness to Rapido’s expansion. The note highlighted a key internal debate: “What will new competition unlock for the consumer that we aren’t already doing at scale?” It also hinted at preemptive steps to ensure Swiggy retains its leadership position and doesn’t cede space to emerging challengers.
While Swiggy praised Rapido’s performance as a portfolio company and acknowledged the value created so far, the reassessment reflects a turning point. As Rapido accelerates its food delivery push, Swiggy is preparing for what could become a more crowded and innovation-driven battle for India’s hungry, fast-moving consumers.
