Rapido, the Indian ride-hailing firm competing with Uber, has doubled its valuation to $2.3 billion following Swiggy’s complete exit from the company. Swiggy sold its 12% stake for about $270 million through two deals, with Dutch investor Prosus acquiring nearly 10% for $222 million and WestBridge Capital buying the remainder for $49 million.
The deal values Rapido at more than twice its September 2024 valuation of $1.1 billion. Prosus, already a backer of both firms, remains Swiggy’s largest shareholder. Swiggy Co-Founder and CEO Sriharsha Majety explained the divestment, stating, “Unfortunately, that didn’t materialize, and Rapido decided to enter the business,” when discussing earlier talks about a potential collaboration in food delivery.
Rapido recently launched food deliveries in Bengaluru through its subsidiary Ownly, marking its first step into Swiggy and Zomato’s core market. CEO Aravind Sanka confirmed that the pilot began in three neighborhoods. While it is early to determine the impact on incumbents, Rapido’s entry could pressure existing players on commissions, though India’s new 18% GST on online deliveries may limit pricing flexibility. Uber CEO Dara Khosrowshahi recently described Rapido as “Uber’s biggest rival in India” highlighting the startup’s growing role in both ride-hailing and food delivery.
