Swiggy

Swiggy shares have declined over 21% in 2025, prompting the company to sell its entire 12% stake in ride-hailing firm Rapido for Rs 2,400 crore to Prosus and Westbridge Capital. The sale, which more than doubles Swiggy's 2022 investment of Rs 950 crore, aims to provide capital for its loss-making quick-commerce arm Instamart. The company is restructuring Instamart into a wholly-owned subsidiary, potentially allowing transition to an inventory-led model. Analyst opinions are mixed: Nomura maintains a 'Buy' rating with Rs 550 target, citing adequate financial resources for Instamart's growth phase. JM Financial remains cautious with a 'Reduce' rating and Rs 440 target, calling the sale a temporary solution and suggesting Swiggy needs over $500 million additional funding. Bank of America maintains 'Neutral' with Rs 475 target. Despite Instamart's 100%+ growth, it's losing market share to competitor Blinkit, which grew 130% and continues aggressive expansion. Instamart relies on higher discounting compared to Blinkit, potentially impacting margins. Swiggy's stock has gained 26% over six months but shows short-term weakness, trading below 5-day to 30-day moving averages.

Swiggy shares declined 1.78% to ₹441.20 during Wednesday trading despite announcing major corporate restructuring worth over ₹2,400 crore. The stock opened higher at ₹458.20 but faced heavy selling pressure throughout the session. The company's board approved selling its entire 12% stake in Rapido for ₹2,399 crore to MIH Investments (₹1,968 crore) and Westbridge (₹431.5 crore). Additionally, Swiggy will transfer its Instamart quick commerce business to subsidiary Swiggy Instamart Private Limited through a slump sale expected after Q3 FY26. Analyst opinions remain mixed - Morgan Stanley maintained overweight rating with ₹450 target, Nomura issued buy rating with ₹550 target, while Macquarie assigned underperform rating with ₹285 target. The Rapido sale will boost net cash to over $850 million, though concerns exist about potential external funding needs for Instamart, which contributes 24.21% of standalone revenue. Both transactions require Competition Commission approval.

Swiggy's board has approved the separation of its quick commerce business Instamart through a slump sale to Swiggy Instamart, an indirect wholly-owned subsidiary. The transaction will transfer all assets, liabilities, permits, licenses, records, intellectual property, employees and contracts. The completion is expected after the third quarter of financial year 2026. Instamart currently has a negative book value of Rs 297 crore. Additionally, Swiggy will fully divest its stake in Rapido to Prosus and WestBridge for Rs 2,400 crore. The company stated the transfer aims to develop a focused and strategically aligned corporate entity for Instamart's long-term development with enhanced resource deployment flexibility.