**Prosus Eyes Major Investment in Rapido Amid Stake Sale**
Dutch investment firm Prosus NV is set to invest between $150 million and $180 million to acquire the largest portion of Swiggy’s 12% stake in the ride-hailing company Rapido. This move comes as Nexus Venture Partners and WestBridge Capital express interest in increasing their holdings in Rapido, which is anticipated to be valued at approximately $2.5 billion to $2.7 billion during the stake sale. At this valuation, Swiggy’s stake would be worth just over $320 million, or ₹2,825 crore.
Rapido was previously valued at $1.1 billion following a $200 million Series E funding round led by WestBridge Capital in September of the previous year. Swiggy acquired its 12% stake in April 2022 for $180 million and informed shareholders in July that it would reassess its investment in Rapido, especially as the mobility startup has ventured into the food delivery sector.
As of June, Prosus held about 2.7% of Rapido, while Nexus and WestBridge owned 9.9% and 19%, respectively. The founders of Rapido, Pavan Guntupalli and Aravind Sanka, each own 4.8%, and co-founder Rishikesh S.R. holds 1.8%.
Swiggy is reportedly conducting an independent process to find buyers for its stake in Rapido, having approached various new investors, including private equity firms and large family offices. Other existing investors, such as TVS Motor Co. Ltd, Yamaha Motor Co. Ltd, and Shell International BV, are also looking to increase their stakes. Swiggy has enlisted Avendus Capital to assist with the stake sale, and existing investors may receive a discount on valuation for increasing their holdings.
Rapido is emerging as a significant competitor in both the ride-hailing and food-tech markets in India, especially with its new food delivery service challenging the dominance of Swiggy and Zomato. Since its inception in 2015, Rapido has raised over $500 million and has garnered global attention, with Uber’s CEO recently identifying Rapido as its fiercest rival in India.
In 2022, Swiggy’s investment in Rapido was seen as a strategic partnership, leveraging Rapido’s riders as couriers for its delivery platform. However, the recent developments indicate a shift in focus as Rapido expands its services.
**FAQ**
*What is the significance of Prosus’s investment in Rapido?*
Prosus’s investment could solidify its position in the rapidly growing ride-hailing and food delivery markets in India, while also reshaping the competitive landscape as existing investors look to increase their stakes.
