Archive · 7 Aug 2025
Swiggy Sells Rapido Stake, Faces Profitability Challenges
Swiggy, a food delivery company, is selling its investment in Rapido, a ride-hailing service that now competes with them.
Swiggy's revenue is up, but it's also losing money as it spends more to compete with rivals like Blinkit.
While Swiggy's food delivery business is growing, its profits are less than its competitor Zomato.
Swiggy hopes to improve by expanding services and focusing on larger markets, but it will have to control its spending to remain profitable.
Swiggy is selling its 12% stake in Rapido, which it originally bought for ₹950 crore, now valued at ₹2,500 crore.
Swiggy's revenue grew over 50% year-on-year to ₹5,308 crore in Q1FY26, but Ebitda margin worsened.
Instamart's revenue growth (113%) lagged behind Blinkit's (155%) in Q1FY26 despite a smaller store count.
Swiggy's food delivery revenue grew, but margins shrank, while Zomato maintained higher profitability.
Swiggy is increasing spending on marketing amid rising competition in quick-commerce and food delivery.
- Who
- Swiggy, Rapido, Zomato, Blinkit
- What
- Swiggy is selling its stake in Rapido while facing challenges in the quick-commerce and food delivery markets.
- When
- Q1FY26
- Where
- India
- Why
- To strengthen its finances and focus on profitability amid increasing competition.
Swiggy's Perspective
Investor's Perspective
Financial Strategy
Swiggy's Perspective
Selling Rapido stake to improve financials and focus on profitability.
Investor's Perspective
Increasing spending on marketing and customer acquisition amid intensifying competition.
- Rapido Stake Value (Swiggy)
- ₹2,500 crore
- Swiggy Revenue (Q1FY26)
- ₹5,308 crore
- Swiggy Ebitda Margin (Q1FY26)
- -15%
- Blinkit Revenue (Q1FY26)
- ₹2,400 crore
- Instamart Revenue (Q1FY26)
- ₹859 crore
