Rapido's Valuation Doubles to $2.3B After Swiggy Stake Sale Boosts Indian Ride-Hailing Giant

Uber-Rival Rapido Doubles Valuation to $2.3B Following Swiggy Stake Sale Rapido, a popular ride-hailing platform in India, has more than doubled its valuation to $2.3 billion following a secondary share sale by food delivery giant Swiggy. The share sale comes just weeks after Rapido began piloting food deliveries, edging into Swiggy's core territory. According to regulatory filings released after Swiggy's board meeting on Tuesday, the Dutch investment group Prosus acquired 10% of Swiggy's 12% stake in Rapido for $222 million. WestBridge Capital acquired the remaining 2% stake for $49 million. The total valuation of Rapido now stands at more than twice its previous valuation of $1.1 billion from September 2024, according to CEO confirmation with TechCrunch. "This significant investment is a testament to our commitment to innovation and growth," said Raghu Vemula, Co-Founder and CEO of Rapido. "We're excited to continue expanding our services and exploring new opportunities in the Indian market." Rapido's entry into food deliveries through its subsidiary Ownly marked a significant move into Swiggy's core territory. The pilot program launched in August in Bengaluru, where Swiggy has long dominated the market. The investment by Prosus, which is already the largest shareholder in Swiggy, highlights the growing interest in Indian startups and their potential for global expansion. "We believe that Rapido has tremendous growth potential and are excited to support their journey," said a spokesperson for Prosus. Rapido's valuation increase comes at a time when the Indian startup ecosystem is witnessing significant growth. The country's ride-hailing market, which was valued at $13 billion in 2020, is expected to reach $35 billion by 2025, according to a report by ResearchAndMarkets.com. The development also raises questions about Swiggy's future plans and its strategy for competing with Rapido in the food delivery space. "Swiggy has always been open to partnerships and collaborations," said a spokesperson for Swiggy. "We will continue to focus on providing the best possible experience to our customers." As Rapido continues to expand its services, it remains to be seen how the company will navigate the competitive landscape of India's ride-hailing market. With a valuation of $2.3 billion and significant investment from Prosus, however, Rapido is well-positioned for future growth and expansion. In related news, Swiggy has reportedly been exploring options to expand its services into new markets, including grocery delivery and logistics. The company has also been investing heavily in technology and infrastructure to improve its operational efficiency and customer experience. As the Indian startup ecosystem continues to evolve, one thing is clear: Rapido's valuation increase is a significant milestone in the company's journey towards becoming a major player in India's ride-hailing market. *Reporting by Techcrunch.*