Meals provide agency Swiggy on Thursday talked about it’s actively re-evaluating its funding in Rapido amidst the cab-hailing startup’s plans to enter the meals provide part.
Swiggy, in its shareholder letter, well-known that the switch will pose a doable battle of curiosity for the company in the end.
In 2022, the Sriharsha Majety-led company first invested in Rapido when the company raised $180 million. Swiggy holds a number of 12% minority stake in Rapido.
“As a shareholder, we’re terribly pleased with their success and value creation, nonetheless do acknowledge a doable battle of curiosity which can come up in the end. Our ~12% minority stake has appreciated significantly since our funding (basis incoming curiosity), and we’re actively re-evaluating our funding on account of above developments,” Swiggy talked about.
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In June, whereas attending Prosus’ Capital Markets Day 2025, Majety—when requested about Rapido’s entry into the part—had talked about that Swiggy gained’t wait and stay up for rivals and might rush into any new alternate options that will come up throughout the meals provide part.
Rapido is making a aggressive space in a piece, for the time being managed by Swiggy and Zomato, by offering significantly lower payment costs to consuming locations—a sticky stage for the meals tech majors who’ve been criticised for charging exorbitant commissions from consuming locations on their platforms.
“The necessary factor question is what will new rivals unlock for the patron which we aren’t already doing at scale. A lot of the new selections we’ve received created (along with on affordability) and might proceed to roll out shall be in course of guaranteeing that rivals doesn’t get a clear opening,” Swiggy’s letter to the shareholders be taught.
It added, “If there’s a new model that will unlock incremental growth throughout the class, we will definitely be great agile and guarantee we participate in it in a short while.”
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