Foodtech major Swiggy on Tuesday moved to streamline its portfolio, with the board approving the sale of its entire stake in bike-taxi aggregator Rapido and a slump sale to transfer its quick-commerce arm Instamart into an indirect wholly-owned subsidiary.
The twin decisions, disclosed in regulatory filings, mark a notable reshuffle of Swiggy’s non-core investments and operating structure as the company sharpens focus on its primary food delivery and grocery marketplaces.
Swiggy will divest the Rapido shares it holds through Roppen Transportation Services in two tranches, selling a majority portion to MIH Investments One B.V., a Prosus group entity, and the remainder to an affiliate of WestBridge Capital, the filings show.
The combined consideration for the stake sale is reported at about ₹2,399–2,400 crore (roughly $270 million), representing a more than two-fold return on Swiggy’s original investment. Company filings cited by multiple outlets indicate the deals will be executed through transfers of equity and preference shares.
The board also approved a slump sale to move Instamart — Swiggy’s quick commerce business that promises groceries and essentials within minutes — into a newly incorporated step-down subsidiary.
Under the transaction, Instamart’s assets, liabilities and operations will be transferred at book value to the indirect arm, a move Swiggy said is intended to provide the unit with greater operational flexibility and to better align capital allocation across group businesses.
The company has indicated the slump sale is expected to complete after necessary shareholder and regulatory approvals.
Market reaction to the announcements was muted but positive in early trade, with Swiggy’s shares rising modestly before stabilizing, as investors parsed the implications of cash inflows from the Rapido exit alongside the strategic refocusing implied by the Instamart restructuring.
Analysts note that while the Rapido sale monetises a non-strategic holding, the Instamart reorganisation could be preparatory — enabling distinct governance, potential third-party investment or future strategic partnerships for the fast-growing but capital-intensive quick-commerce vertical.
For Rapido, the infusion from Prosus and WestBridge is expected to support an aggressive expansion and fundraise planned by the Bengaluru-based mobility player; several reports suggest the company is pursuing a broader financing round that would further bolster its valuation and product expansion into adjacent categories.
Swiggy’s exit removes a potential conflict after Rapido began venturing into food delivery and commercial services that could overlap with Swiggy’s core offerings.
Swiggy declined to comment beyond its exchange filings. The transactions reflect a broader trend among large Indian digital platforms to rebalance portfolios, monetise matured bets and ring-fence newer, capital-heavy verticals for targeted governance — a pattern likely to shape sector deals and investor interest in the coming quarters.
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