Food delivery and quick commerce company Swiggy on Thursday said it is actively re-evaluating its investment in Rapido, amidst the cab-hailing startup’s plans to enter the food delivery segment.
Swiggy, in its shareholder letter, noted that the move will pose a potential conflict of interest for the company in the future.
In 2022, the Sriharsha Majety-led firm first invested in Rapido when the company raised $180 million. Swiggy holds about a 12% minority stake in Rapido, and Majety also sits on the cab-hailing platform’s board.
“As a shareholder, we are extremely happy with their success and value creation, but do acknowledge a potential conflict of interest that may arise in the future. Our ~12% minority stake has appreciated significantly since our investment (basis incoming interest), and we are actively re-evaluating our investment due to the above developments,” Swiggy said.
The company added that the potential monetisation of its investment in Rapido will also expand its cash balances. Given that Rapido was last valued at $1-1.1 billion, Swiggy’s 12% stake in the company would be valued at around $130 million.
During the post-earnings call, Majety said that both Swiggy and Rapido had explored a potential partnership in food delivery but “unfortunately, that did not materialise, and they have decided to get into the business themselves”.
This has become a “wedge” that has made Swiggy aware of the conflict of interest, and therefore, the parties are planning to go their separate ways.
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In June, while attending Prosus’ Capital Markets Day 2025, Majety—when asked about Rapido’s entry into the segment—had said that Swiggy will not wait and watch for competition and will rush into any new opportunities that might come up in the food delivery segment.
Rapido is creating a competitive space in a segment, currently controlled by Swiggy and Zomato, by offering significantly lower commission rates to restaurants—a sticky point for the food tech majors who have been criticised for charging exorbitant commissions from restaurants on their platforms.
“The key question is what will new competition unlock for the consumer which we are not already doing at scale. Many of the new offerings we have created (including on affordability) and will continue to roll out will be towards ensuring that competition does not get a clear opening,” Swiggy’s letter to the shareholders read.
It added, “If there’s a new model that can unlock incremental growth in the category, we will definitely be super agile and make sure we participate in it very quickly.”
(The copy was updated with additional information)
Edited by Suman Singh
