Swiggy Approves Strategic Sale of Rapido Stake and Instamart Restructuring
Swiggy is divesting its stake in Roppen Transportation, operator of Rapido, for nearly Rs 2,400 crore to avoid conflicts with Rapido's food delivery plans. The sale involves MIH Investments and Westbridge. Additionally, Swiggy is restructuring its Instamart unit for better operational focus, pending shareholder approval.
- Country:
- India
Food delivery giant Swiggy announced it will sell its stake in Roppen Transportation Services, the company behind bike taxi aggregator Rapido, in a deal worth nearly Rs 2,400 crore. This move aims to prevent a potential conflict of interest as Rapido plans to enter the food delivery market.
The transaction will see Swiggy transfer its shares to MIH Investments One BV, a Netherlands-based company, under an arm's length agreement. The sale is part of a strategic decision to optimize Swiggy's investments, benefiting the company and its shareholders.
In other strategic moves, Swiggy plans to spin off its Instamart business into a separate entity, Swiggy Instamart Private Limited, to enhance operational efficiency. This restructuring aligns with Swiggy's focus on long-term growth and resource flexibility, subject to shareholder approval.
(With inputs from agencies.)
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