Swiggy , the leading food delivery and quick commerce platform in India, has announced significant strategic moves that are set to reshape its business structure. The company's board has given the green light to two major decisions: the separation of its quick commerce business, Instamart, and the complete divestment of its stake in the bike-taxi startup Rapido.

Instamart Separation

Swiggy's board has approved the transfer of its quick commerce business, Instamart, to Swiggy Instamart Private Limited, an indirect wholly-owned subsidiary. This move will be executed through a slump sale, which involves the transfer of all assets, liabilities, permits, licenses, records, intellectual property, employees, and contracts related to the Instamart business.

Key details of the Instamart separation include:

• The transaction is expected to be completed after the third quarter of the financial year 2026.
• As of March 31, 2025, Instamart had a negative book value of Rs 2,976.66 crore.
• In the fiscal year 2024-2025, Instamart generated revenue of Rs 2,129.58 crore, accounting for 24.21% of Swiggy's standalone revenue.

Swiggy stated that this restructuring aims to "develop a focused, efficient, and strategically aligned corporate entity for the long-term development and performance of the Instamart business along with enhanced flexibility in deployment of resources."

Rapido Stake Sale

In a separate but equally significant move, Swiggy has decided to fully divest its stake in Rapido, a popular bike-taxi startup. The sale will be executed in two parts:

1. Sale to Prosus (MIH Investments One B.V.):

   • 10 equity shares and 163,990 Series D Compulsorily Convertible Preference Shares (CCPS)
   • Consideration: Rs 1,968.00 crore

2. Sale to WestBridge (Setu AIF Trust):

   • 35,958 Series D CCPS
   • Consideration: Rs 431.49 crore

The total value of the Rapido stake sale amounts to Rs 2,399.49 crore.

Implications and Outlook

These strategic decisions reflect Swiggy's focus on streamlining its operations and potentially unlocking value in its various business segments. The separation of Instamart into a distinct entity could allow for more focused growth and management of the quick commerce vertical, which has become increasingly important in the competitive e-commerce landscape.

The divestment from Rapido, on the other hand, may indicate Swiggy's intention to concentrate on its core food delivery and quick commerce businesses, while realizing substantial returns on its investment in the bike-taxi sector.

As these transactions progress, stakeholders will be keenly watching how Swiggy leverages these changes to enhance its market position and financial performance in the evolving digital commerce ecosystem.

Swiggy , the food delivery giant, has made significant strategic moves to reshape its investment portfolio and business structure. The company's Board of Directors has approved two separate transactions to sell its holdings in Roppen Transportation Services Private Limited (Rapido) and plans to restructure its quick commerce business, Instamart.

Rapido Stake Sale

Swiggy has agreed to sell its stakes in Rapido, a bike taxi and auto-rickshaw aggregator, in two separate deals totaling approximately ₹2,400 crore. The transactions are as follows:

1. Sale to Westbridge Capital: Swiggy will sell 35,958 Series D Compulsorily Convertible Preference Shares (CCPS) to Setu AIF Trust (Westbridge) for ₹431.50 crore.

2. Sale to MIH Investments: The company will divest 10 equity shares and 163,990 Series D CCPS to MIH Investments One B.V., a Netherlands-based company, for ₹1,968 crore.

The sale to MIH Investments is considered a related party transaction, as MIH belongs to the Prosus group, which holds approximately 23.31% shareholding in Swiggy through MIH India Food Holdings BV. This transaction requires approval from the Competition Commission of India and Swiggy's shareholders.

Instamart Restructuring

In a separate move, Swiggy's Board has approved the sale and transfer of its quick commerce business, Instamart, to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary of the company. This transfer will be executed through a slump sale, subject to shareholder approval.

Key details of the Instamart restructuring include:

• Revenue Contribution: Instamart contributed ₹21,295.84 million, representing 24.21% of Swiggy's standalone revenue.
• Net Worth: Instamart's net worth stood at ₹(2,976.66) million, accounting for (2.48)% of Swiggy's standalone net worth.
• Transaction Timeline: The completion of the slump sale is expected after the third quarter.

Strategic Implications

These moves are part of Swiggy's efforts to optimize its investment portfolio and streamline its business operations. The company stated that these strategic decisions would help realize investments for the benefit of the company and its shareholders.

The restructuring of Instamart aims to create a focused and efficient entity for the long-term development of the quick commerce business, allowing for enhanced flexibility in resource deployment.

As Swiggy continues to evolve its business model, these transactions reflect the company's commitment to strategic growth and value creation for its stakeholders in the competitive food delivery and quick commerce sectors.