Funding · Mobility & Logistics

Rapido finalises funding as Swiggy exits stake

By Startup Enthusiast · 23 September 2025

What they do

Rapido is a ride-hailing startup offering bike taxis, autos, and cab services across various Indian cities

The company is raising $500-550 million through primary and secondary transactions, valuing the firm at $2.3 billion

Food delivery major Swiggy is offloading its 11.8% stake for about $270 million due to potential business conflicts

Ride-hailing firm Rapido is finalising a fundraising round of $500-550 million through a combination of primary and secondary deals.
The primary portion of the round is expected to be about $300 million, with Dutch investment group Prosus investing $240-250 million and WestBridge Capital providing the remainder.
Food and grocery delivery company Swiggy is exiting its 11.8% stake in the startup by selling its holdings to Prosus and WestBridge Capital for approximately $270 million (Rs 2,400 crore).
The secondary share sale values Rapido at $2.3 billion, more than double its $1.1 billion valuation from February.
The funding will help Rapido strengthen its position in the ride-hailing market, where it holds a significant market share, while also supporting its expansion into the food delivery sector through its pilot offering Ownly.

Swiggy decided to sell its stake due to a potential conflict of interest after Rapido entered the food delivery market with its pilot program Ownly.
For Swiggy, the transaction provides a capital cushion to manage cash burn in its quick commerce arm, Instamart, while delivering a 2.4 times return on its initial investment from 2022.
The secondary transaction reflects strong investor confidence as Rapido continues to scale its operations and grow its urban mobility services across India.

Rapido operates a ride-hailing application that offers bike taxis, auto-rickshaws, and cabs to commuters in multiple Indian cities.
The platform connects individual users with vehicle operators, referred to as captains, to facilitate daily urban commuting.
The company generates revenue by charging commissions on rides completed through its mobile application platform.
Rapido has expanded its service offerings beyond two-wheelers and three-wheelers to include four-wheeler cab services in several markets.
The firm recently initiated a pilot program for food delivery named Ownly in select neighborhoods in Bengaluru, entering a new competitive segment.

Prosus (lead) — Dutch investor and major shareholder in both Swiggy and Rapido
WestBridge Capital (co-lead) — Existing investor and major stakeholder in Rapido
Swiggy (seller) — Food and grocery delivery company exiting its 11.8% stake

Product: A ride-hailing app focused on bike taxis, with expanding mobility and delivery offerings.
Customers: Commuters and riders seeking low-cost transport, plus drivers earning through the platform.
How it makes money: Charges commissions or service fees on rides and related marketplace transactions.
What sets it apart: Uses two-wheelers to provide low-cost, flexible urban transport and matching.
Operations: Operates in multiple Indian cities and is building a broader super-app model.