Core Insights - India-based magicpin and ride-hailing company Rapido have partnered to compete against Zomato and Swiggy in the online food delivery market [1] - The collaboration will integrate magicpin's extensive restaurant network into Rapido's food delivery platform, Ownly, providing access to over 80,000 restaurants in India [1][2] - Rapido's Ownly was launched in August 2025, initially serving select neighborhoods in Bengaluru, and the partnership aims to expand its reach [2] Company Strategies - Rapido's spokesperson indicated that the company primarily on-boards restaurants directly, with a small share coming from partners like magicpin, and utilizes its fleet for last-mile deliveries in select cities [3] - The focus of Rapido remains on creating reliable and affordable delivery solutions for merchants while enhancing customer and delivery captain experiences [4] Market Dynamics - The partnership is seen as beneficial for restaurant chains on magicpin's platform, providing them with more options [4] - Swiggy has recently reassessed its relationship with Rapido, indicating potential conflicts of interest due to Rapido's entry into food delivery, leading to a divestment of its stake in Roppen Transportation Services for nearly Rs2.4 billion [5] - Zomato holds approximately a 15% interest in magicpin, indicating a competitive landscape among these companies [5]

Core Insights - Swiggy has fully divested its ₹2,400 crore stake in Rapido, selling shares to Prosus NV and WestBridge Capital [1][2] - The exit from Rapido, which Swiggy invested in for over three years, marks a significant financial return, valuing Rapido at approximately $2.5–2.7 billion [3] Company Actions - The transaction involved Prosus's subsidiary MIH Investments One B.V. acquiring shares worth ₹1,968 crore, while WestBridge Capital acquired ₹431.5 crore [1][2] - The deal is pending customary approvals from the Competition Commission of India and Swiggy's shareholders [2] Financial Performance - Swiggy's initial investment in Rapido was $180 million (around ₹1,350 crore) in April 2022, with a valuation of $1.1 billion at that time [3] - Rapido's revenue increased to ₹648 crore in FY24 from ₹443 crore in FY23, while losses narrowed to ₹371 crore from ₹675 crore [5] - Swiggy reported a net loss of ₹1,197 crore in the June 2025 quarter, despite a 54% year-on-year revenue increase to ₹4,961 crore [6] Market Dynamics - Rapido has expanded its services beyond two-wheeler ride-hailing to include autos, cars, and food delivery, aiming to disrupt the food-tech market by offering lower commissions [3] - The food delivery market in India remains dominated by Zomato and Swiggy, holding 54% and 46% market shares respectively, with new entrants unlikely to significantly alter this duopoly [4]

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]