Rapido looks to raise $500 million funding as Swiggy exits stake

Bengaluru-based ride-hailing startup Rapido is finalising a $500-550 million (Rs 4,500-5,000 crore) funding round, combining primary and secondary deals, while Swiggy exits its stake in the company.The move comes as Rapido expands its ride-hailing operations and scales its food delivery platform, Ownly. The primary component of the deal is expected to total around $300 million, with Dutch investor Prosus contributing $240-250 million and WestBridge Capital investing the remainder. Both are existing investors in Rapido, reported ET.The secondary transaction values Rapido at $2.3 billion (Rs 20,300 crore), more than double its $1.1 billion valuation in February when Prosus invested $30 million.

Swiggy exits Rapido stake

On Tuesday, Swiggy informed stock exchanges that it would sell its 11.8% stake in Rapido to Prosus and WestBridge Capital for approximately $270 million (Rs 2,400 crore). The sale was approved by Swiggy’s board, which includes Prosus nominee directors Roger Rabalais and Ashutosh Sharma, and is pending shareholder and regulatory approvals.Swiggy CEO Harsha Majety said, as quoted by ET, “When we got in two and a half years back, it was a mobility player doing really well. Unfortunately, they decided to get into food delivery themselves. That made us take notice of the conflict, and therefore we’re planning to go separate ways on this.”

Rapido’s growth

The funding will help Rapido strengthen its ride-hailing business, where it currently leads with nearly 50% market share. In the four-wheeler segment, it is second behind Uber. Cofounder and CEO Aravind Sanka said, “sustainable growth rather than chasing market leadership at any cost.”Rapido grew more than 40% during 2024-25. For 2023-24, it reported operating revenue of Rs 648 crore, up 46%, while narrowing net losses by 45% to Rs 371 crore.