Food app Swiggy on Tuesday has notified exchanges about two filings related to board approval for consideration of stake-sale transactions and a transaction for an indirect step-down investment related to Instamart.
For the Rapido transaction, the company announced, the board had "approved the proposal for sale of 35,958 Series D Compulsorily Convertible Preference Shares (“CCPS”) held by the Company in Roppen Transportation Services Private Limited (“Rapido”) to Setu AIF Trust, a fund registered under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 as a Category II Alternative Investment Fund bearing registration number IN/AIF2/23- 24/1336 and/or its affiliates (“Westbridge”).
In the Rapido transaction, Swiggy has sold a stake in Rapido Prosus and WestBridge collectively at approximately ₹ 2,400 crores. Prosus NV, which has the backing from Tencent, has reportedly paid ₹ 1,968 crores while Westbridge has added ₹ 431.5 crore.
This comes after Swiggy, following its first quarter earnings for fiscal 2026, said that the company would reconsider its Rapido stake as the cab aggregator entered the food delivery space.
The transaction doubles the valuation of Rapido from nearly USD 1.1 billion (nearly ₹ 9,000 crores) a year ago to ₹ 20,000 crores.
On Tuesday, Swiggy also notified that its board had "approved the proposal for sale of 10 equity shares and 1,63,990 Series D Compulsorily Convertible Preference Shares (“CCPS”) held by the Company in Roppen Transportation Services Private Limited (“Rapido”) to MIH Investments One B.V., a company incorporated in the Netherlands, having its registered office at Gustav Mahlerplein 5, Symphony Offices, 1082 MS Amsterdam, The Netherlands (“Purchaser”)."
Swiggy's board has also notified the approval and sale and transfer of its "quick commerce business under the brand name ‘Instamart’, along with all relevant assets, liabilities, permits and licenses, records, intellectual property, employees and contracts (“Instamart Undertaking”) of the Company to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary of the Company (“Purchaser WOS”), incorporated in India, as a going concern through a slump sale. (“Proposed Transfer”)."
