Prosus eyes biggest bite of Swiggy’s Rapido stake. Valuation likely to double.

Core Insights - Dutch investment firm Prosus NV plans to invest $150-180 million to acquire the largest portion of Swiggy's 12% stake in Rapido, which is expected to be valued at $2.5-2.7 billion for the stake sale [1][8] - Swiggy's 12% stake in Rapido, acquired for $180 million in April 2022, is now likely valued at over $320 million or ₹2,825 crore [1][2] - Existing investors Nexus Venture Partners and WestBridge Capital are also looking to increase their holdings in Rapido, indicating strong interest in the company [1][4] Company Valuation and Stake Sale - Rapido was previously valued at $1.1 billion during its Series E fundraising round in September 2022, which raised $200 million [2] - Swiggy's decision to re-evaluate its investment in Rapido comes as the mobility startup has entered the food-delivery segment, creating potential conflicts with Swiggy's core business [2][5] - Avendus Capital has been appointed by Swiggy to assist with the stake sale process [4] Investor Dynamics - As of June, Prosus owned approximately 2.7% of Rapido, while Nexus and WestBridge held 9.9% and 19% respectively [3] - Other investors like TVS Motor Co. Ltd, Yamaha Motor Co. Ltd, and Shell International BV are also looking to increase their stakes in Rapido [4][8] - The existing investors may receive a discount on valuation for increasing their stakes through the purchase [4] Market Position and Competition - Rapido has raised over $500 million since its inception in 2015 and is gaining recognition as a significant competitor in India's ride-hailing and food-tech markets [5][8] - The company has launched its Ownly food-delivery service, which charges restaurants in Bengaluru about half the commission of larger rivals like Swiggy and Zomato [7] - India's food-delivery market remains a duopoly, with Zomato holding a 54% market share and Swiggy 46% [9] Financial Performance - Swiggy reported a net loss of ₹1,197 crore for the June quarter, doubling year-on-year, while its revenue increased to ₹4,961 crore from ₹3,222 crore a year earlier [10]