Bengaluru-based ride-hailing startup Rapido is in advanced talks to raise between $500 million and $550 million through a mix of primary and secondary share sales, with food delivery major Swiggy set to offload its holding. The round, among the largest venture financings this year, values Rapido at about $2.3 billion, more than double its $1.1 billion mark in February.
People familiar with the matter said the primary infusion is pegged at $300 million, led by Prosus with $240–250 million, and WestBridge Capital bringing in the remainder. The secondary leg will see Swiggy exit its 11.8 per cent stake for $270 million (₹2,400 crore), with Prosus and WestBridge absorbing the shares. Both investors already count among Rapido’s top backers, with WestBridge holding nearly 19 per cent and Prosus also the largest shareholder in Swiggy at 23 per cent.
For Swiggy, which invested close to ₹1,000 crore in Rapido in 2022, the exit delivers a 2.4x return. The move comes amid a cash crunch at its quick commerce arm Instamart, where it spent over ₹1,050 crore in the June quarter. As of June 30, Swiggy reported ₹5,354 crore in cash reserves, significantly lower than Blinkit parent Eternal, which had more than ₹18,000 crore on hand. Analysts say the Rapido sale will add some cushion but may not eliminate the need for further fundraising.
Rapido, meanwhile, will use the fresh capital to expand its ride-hailing footprint and strengthen food delivery offshoot Ownly. The company claims leadership in the overall ride-hailing market, though it trails Uber in the four-wheeler category. Rapido reported FY24 operating revenue of ₹648 crore, up 46 per cent year-on-year, while trimming losses by 45 per cent to ₹371 crore. Growth in FY25 is estimated at over 40 per cent, according to people aware of internal numbers.
