Swiggy has announced that it is actively re-evaluating its approximately 12% stake in Rapido, valued at around $120 million following Rapido’s plans to enter the food delivery business, a direct overlap with Swiggy’s core market. This strategic review is triggered by concerns of conflict of interest that may arise as Rapido moves to challenge incumbents.

Rapido, backed by Swiggy since 2022 and now valued north of $1 billion, has leveraged its mobility network to pilot a food delivery service in Bengaluru. The company offers restaurants commission rates between 8–15%, significantly undercutting Swiggy's 16–30%, aiming to disrupt the market.

This move also coincides with Swiggy reporting a widening loss of ₹1,197 crore (~$137 million) in Q1 FY26, largely due to rising investments in its Instamart quick-commerce arm.

In its recent shareholder communication, Swiggy flagged this investment reassessment alongside updates on margins, competition, and rapid-commerce expansion. The reassessment underlines Swiggy’s intent to protect its primary business while navigating intensifying competition and corporate governance clarity.