Why Swiggy is cancelling its Rapido ride

Swiggy had to make a decision: three years ago, Rapido had made a strategic investment, but the driving sharing company was now watching the food distribution. Finally, in July, Swiggy chose to sell the 12% Rapido shares, which he bought for $ 180 million in 2022.

However, Swiggy kills two birds with a shot: prevents a potential conflict of interest in food distribution, and raises a handsome amount that can definitely help at a time when the rapid trade is still in cash. On Monday, Mint Prosus reported that he wanted to buy a large part of the 12% Rapido shares in the offer and that he potentially raised. La2,825 Crore. Mint He looks at the back of the upcoming agreement and examines how he gives Swiggy a little more breathing.

How is Swiggy’s cash position?

Swiggy rose in November 2024 La4,359 Crore from his first public offering became India’s second public food distribution company. Duran Cash Reserves La8,183 CRORE at the end of December, LaAt the end of the June quarter, 5,354 Crore. Burn ratio – cash expenditure ratio to cover costs – points, touching La1,053 Crore in June quarter. At this speed, cash money will be exhausted in four or five quarters unless Swiggy collects more money.

Is this a problem?

In the last two quarters, analysts wondered if Swiggy had to increase the equality, or whether it was comfortable with the cash chest. Swiggy claims that his balance sheet is strong. The company expects the financial position to be strengthened after food distribution and food businesses have returned profitable. Swiggy is also the fast trade branch of Instamart, which made it profitable in June 2026 – La100 Swiggy wins, reports a loss La24.

While Swiggy claims that the losses are peak, it is seen that Instamart would quit cash bleeding.

How does Rapido sales help?

Mint reported that the Dutch firm Prosus NV plans to buy most of Swiggy’s Rapido shares. The agreement can value Rapido for $ 2.5-2.7 billion, and Swiggy’s share is about 320 million dollars or La2,825 Crore. If sales are realized, Swiggy’s cash reserves will touch La8.179 Crore. This will help to compete with the food distribution platform’s zomato, specially held zepto and TATA -supported Bigbasket with deep cash pockets.

Is there anything else Swiggy can do?

Companies listed have various options for collecting money. They can borrow from banks through qualified corporate settlements (QIPs) or sell shares to investors. However, it is not a permanent solution – at the existing combustion ratio, the sale of piles will provide relief to the company for only one year.

Instamart said if Swiggy was profitable until June 2026, he said that the company would not need any more money, and a leading intermediary company said anonymity. “However, if they cannot cope until then, they will probably have to think of gathering three to four months or quarter more funds after the sale of Rapido shares to support operations and growth”. Analyst added that competitors such as Zomato with deeper pockets can apply pressure; So even though this pile sale is useful, it is just a short -term relief.