Swiggy Ltd.SWIGGY₹440.50 -1.94%

Swiggy Ltd. has approved the complete sale of its investment in ride-hailing firm Roppen Transportation Services Private Limited (Rapido), securing a substantial cash infusion of nearly ₹2,400 crore through two simultaneous transactions. 

Swiggy’s full exit from Rapido was executed via two distinct share purchase agreements (SPAs) with two separate investment groups:

  • The major tranche involves the sale of 10 equity shares and 1,63,990 Series D Compulsorily Convertible Preference Shares (CCPS) to MIH Investments One B.V., an affiliate of the Prosus group incorporated in the Netherlands. This transaction is valued at a significant ₹1,968 crore (Indian Rupees One Thousand Nine Hundred Sixty-Eight Crore only). 
  • The second, supplementary transaction involves the sale of the remaining 35,958 Series D CCPS held by Swiggy in Rapido. This stake is being acquired by Setu AIF Trust and/or its affiliates (Westbridge) for a consideration of ₹431.5 crore (Indian Rupees Four Hundred Thirty-One Crore Forty-Nine Lakhs Sixty Thousand only).

In a parallel move, the Board approved the transfer of its quick commerce business, operating under the brand name ‘Instamart’, to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary.

The transfer, which includes all relevant assets, liabilities, intellectual property, employees, and contracts (Instamart Undertaking), will be executed as a slump sale and requires shareholder approval.

Instamart’s revenue for FY 2024-2025 was ₹21,295.84 million, representing 24.21% of Swiggy’s standalone revenue. Notably, the Instamart Undertaking carried a negative net worth of ₹2,976.66 million as of March 31, 2025.

Swiggy will receive a lump sum cash consideration based on the book value of the Instamart Undertaking’s assets and liabilities as on the effective date of the transfer.

The company’s rationale is aimed at “developing a focused, efficient, and strategically aligned corporate entity for the long-term development and performance of the Instamart business along with enhanced flexibility in deployment of resources.”

The completion of the slump sale is expected after the expiry of the third quarter of FY 2025–26.

These strategic corporate actions provide a clear framework for Swiggy’s future, monetizing a non-core investment while structurally isolating and providing sharp focus to its rapidly growing quick commerce vertical.

Note: The stock price mentioned is as of 12:17 pm.

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