Swiggy to Reassess Rapido Investment

Bengaluru

Food-tech giant Swiggy is reconsidering its investment in Rapido after the ride-hailing startup entered the food delivery sector, raising concerns about a potential conflict of interest. In a letter to shareholders, Swiggy acknowledged Rapido’s success in mobility but noted its foray into food delivery via a zero-commission pilot project, ‘Ownly’, launched in Bengaluru in June.

Swiggy, which holds a 12% stake in Rapido valued at around ₹1,020 crore, said the stake had appreciated significantly and it is actively re-evaluating the investment in light of Rapido positioning itself as a direct competitor to Swiggy and Zomato. Rapido’s entry marks a disruptive shift, with the startup offering fixed-fee pricing to restaurants and aiming for affordability-driven growth.

Swiggy emphasized that the food delivery space continues to attract new models and competitors annually. “The key question is what new competition unlocks for the consumer that we are not already doing at scale,” the company stated, adding it will remain agile and responsive to emerging models.

Meanwhile, Swiggy reported a sharp rise in net losses to ₹1,197 crore in Q1 FY26 from ₹611 crore a year earlier, driven by continued investments and losses in its quick-commerce arm, Instamart. Revenue, however, rose 54% YoY to ₹4,961 crore. CEO Sriharsha Majety attributed the seasonal dip in margins to delivery partner availability and appraisal cycles, while reaffirming the company’s focus on long-term sustainable growth and expanding operations across key verticals.