September 24, 2025 — Swiggy is preparing to step back from one business and reshape another, as it faces growing pressure on its finances. The food delivery company is set to sell its entire stake in bike-taxi platform Rapido and is reorganising its grocery arm, Instamart, into a separate unit.
Swiggy’s board has cleared the sale of its 12% share in Rapido for about ₹2,400 crore. The buyers will be Prosus, a Dutch investment firm, and U.S. fund WestBridge. The decision comes after Rapido announced plans to enter the food delivery market, creating a direct clash with Swiggy’s core business. By selling out now, Swiggy avoids both a conflict of interest and the need to put more money into Rapido.
At the same time, Swiggy will shift its quick-commerce business, Instamart, into a new wholly owned company through a slump sale. This means all of Instamart’s assets, contracts, employees, and liabilities will be moved to the new entity. The move is aimed at making Instamart’s financial performance easier to track and manage, while also giving Swiggy flexibility if it wants to raise funds for the grocery unit in the future.
The timing of these changes highlights Swiggy’s growing focus on cash flow. The company began the financial year with ₹5,354 crore in cash but has already spent nearly ₹1,000 crore in just one quarter. That burn rate is raising alarms, and the Rapido sale gives Swiggy much-needed breathing space.
Exiting Rapido also allows Swiggy to focus on its main delivery and grocery businesses. Analysts believe the company can now channel resources into areas with better long-term returns, such as Instamart and logistics. However, Instamart itself has been loss-making, and moving it into a separate structure will only succeed if shareholders and regulators give the green light.
The bigger challenge for Swiggy is clear: it must learn to grow without burning through cash at the same pace. India’s food and grocery delivery market is still highly competitive, with rivals fighting for customers on thin margins.
In the coming months, investors and industry watchers will be looking at three things: how smoothly the Rapido deal goes through, whether Instamart’s new setup improves transparency, and if Swiggy can finally bring discipline to its finances. In a business where every rupee counts, these steps could decide how Swiggy survives and competes in India’s delivery wars.
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