Swiggy share price has slipped over 21 percent in 2025, and the food delivery giant is now looking to pivot its strategy by monetising its Rapido stake. The ₹2,400 crore sale, announced this week, is expected to free up capital for Instamart, its loss-making quick-commerce arm, which management hopes can emerge as the next growth engine.
Rapido Stake Sale Details
The company will divest its entire 12 percent holding in ride-hailing firm Rapido to MIH India Food Holdings BV (Prosus) and Setu AIF Trust (Westbridge) for a total pre-tax consideration of ₹2,400 crore. Prosus, which already holds a 23.3 percent stake in Swiggy as of June 2025, will acquire ₹1,968 crore worth, while Westbridge will pick up the remaining ₹431 crore. The transaction, which more than doubles Swiggy’s 2022 investment of ₹950 crore, awaits shareholder and regulatory approvals, including from the Competition Commission of India.
Should you buy?
Swiggy’s recent strategic moves, including the sale of its Rapido stake and restructuring of Instamart, have drawn mixed reactions from market analysts. While some see the monetisation as a timely financial boost for the company’s quick-commerce operations, others caution that it may only provide temporary relief amid growing competitive pressures and ongoing cash burn. Here’s how leading brokerages have assessed the developments.
Nomura welcomed the monetisation, stating it provides “enough financial resources to weather the current burn phase of its Quick commerce (Instamart) business,” and retained a ‘Buy’ rating with a target of ₹550. The brokerage emphasized that disciplined execution and improved visibility on breakeven will be key catalysts for the stock.
JM Financial, however, offered a more cautious view, calling the Rapido exit “only a temporary solution” that extends Swiggy’s runway by roughly two quarters. The firm retained a ‘Reduce’ rating with a target of ₹440, noting that the stake sale value fell short of its estimate of ₹2,900 crore and may not be enough to resolve the company’s balance sheet challenges. JM Financial highlighted the growing competitive threat from Blinkit, which expanded 130 percent, warning that Instamart’s slower expansion strategy could cause it to lag significantly.
“Despite Instamart delivering 100 per cent-plus YoY GOV growth in recent quarters, it has been losing relative share to Blinkit, as the latter expanded 130 per cent. With Blinkit’s guidance suggesting plans to double its store count over the medium term, we believe Instamart’s curbed expansion strategy runs the risk of meaningfully falling behind its more ambitious competition,” JM said.
The brokerage further recommended a larger fund-raise of more than $500 million, in addition to Rapido proceeds, to support Swiggy’s long-term ambitions in quick commerce.
Stock Performance and Outlook
The stock has surged nearly 30 percent in the past six months but declined just over 2 percent in the last month. Currently, it trades 31 percent below its peak of ₹617 reached in December 2023, and has a 52-week low of ₹297 touched in May 2025.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
