Swiggy re-evaluating funding in Rapido because it readies to enter meals supply section

Meals supply firm Swiggy on Thursday mentioned it’s actively re-evaluating its funding in Rapido amidst the cab-hailing startup’s plans to enter the meals supply section.

Swiggy, in its shareholder letter, famous that the transfer will pose a possible battle of curiosity for the corporate sooner or later.

In 2022, the Sriharsha Majety-led agency first invested in Rapido when the corporate raised $180 million. Swiggy holds a few 12% minority stake in Rapido.

“As a shareholder, we’re extraordinarily proud of their success and worth creation, however do acknowledge a possible battle of curiosity which will come up sooner or later. Our ~12% minority stake has appreciated considerably since our funding (foundation incoming curiosity), and we’re actively re-evaluating our funding as a result of above developments,” Swiggy mentioned.

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In June, whereas attending Prosus’ Capital Markets Day 2025, Majety—when requested about Rapido’s entry into the section—had mentioned that Swiggy won’t wait and look ahead to competitors and can rush into any new alternatives that may come up within the meals supply section.

Rapido is making a aggressive area in a section, at the moment managed by Swiggy and Zomato, by providing considerably decrease fee charges to eating places—a sticky level for the meals tech majors who’ve been criticised for charging exorbitant commissions from eating places on their platforms.

“The important thing query is what is going to new competitors unlock for the patron which we aren’t already doing at scale. Most of the new choices we’ve got created (together with on affordability) and can proceed to roll out shall be in direction of guaranteeing that competitors doesn’t get a transparent opening,” Swiggy’s letter to the shareholders learn.

It added, “If there is a new mannequin that may unlock incremental development within the class, we will certainly be tremendous agile and ensure we take part in it in a short time.”