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Amid the entry of Rapido in the food delivery segment, Swiggy is mulling divesting its stake in the ride-hailing unicorn.
In its Q1 shareholders’ letter, Swiggy said that its stake of about 12% in Rapido has appreciated significantly since its investment, but it is now “actively re-evaluating” the investment due to the entry of the startup in its bread-and-butter food delivery industry.
“Rapido, one of our investee companies, has announced their intention to enter the food delivery space. Having scaled up from a bike-taxi player to a full-fledged mobility platform, Rapido is now the largest mobility player in India by rides, and has been a disruptor in its space. As a shareholder, we are extremely happy with their success and value-creation; but do acknowledge a potential conflict of interest that may arise in the future,” the company said.
At a time when it is investing aggressively to expand its quick commerce business, Swiggy said that potential monetisation of its investment in Rapido will also allow it to increase its cash balance. However, the company didn’t give a timeline for divestment plans and said it will share more details as things progress.
(The story will be updated soon)
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