Swiggy Shares in Focus After Rs 2,399 Crore Stake Sale in Rapido, Instamart Slump Sale

On Wednesday, the Swiggy shares surged at a high of 2.60 percent. Currently, it is trading at 1.01 percent lower from the previous closing price of Rs 449.20 per share after it has recently restructured its business by hiving off Instamart, the company’s fast-growing quick commerce arm, into a separate, wholly owned subsidiary named Swiggy Instamart Private Limited. This strategic move involves transferring all Instamart assets, liabilities, employees, permits, contracts, and intellectual property to the new entity via a slump sale at book value, with completion expected after Q3FY26 and subject to shareholder approval. The subsidiary structure is designed to sharpen strategic focus, improve operational flexibility, and provide Swiggy with better transparency for financial reporting.

Sale of Rapido Stake

Another exchange filing also revealed that Swiggy has exited its investment in bike taxi aggregator Rapido, selling around 12 percent stake to Prosus and WestBridge Capital for approximately Rs 2,399 crore. Prosus acquired a majority of the shares for Rs 1,968 crore, while WestBridge Capital purchased the remaining for Rs 431.49 crore. The proceeds are expected to boost Swiggy’s cash reserves as competition intensifies in the quick commerce and food delivery market. The strategic exit also mitigates conflict of interest as Rapido forays into food delivery services.

Q1FY26 Financials

For the quarter ended June 2025, Swiggy reported a robust total income of Rs 5,048 crore, marking a year-on-year increase of 52.5 percent from Rs 3,310 crore in Q1FY25. However, profitability has been impacted negatively, with net loss widening to Rs 1,197 crore compared to Rs 611 crore in the year-ago period. Food delivery revenue rose 20 percent year-on-year to Rs 1,800 crore, while quick commerce revenue, which includes Instamart, more than doubled to Rs 806 crore annually. The company held Rs 5,354 crore in cash and equivalents as of June 2025, with further inflows expected from the Rapido sale.

Instamart Market Share

Swiggy Instamart has emerged as a major player in India’s quick commerce sector, overtaking Zepto for the second spot in net merchandise value (NMV) as of August 2025, as per sources. Blinkit leads the market with a 52 percent share with an NMV of Rs 845 crore weekly, followed by Instamart at 25 percent with Rs 405 crore and Zepto at 23 percent.

Expansion and Future Plans

Swiggy is aggressively expanding the geographical footprint and store network for Instamart. The service now operates in over 100 cities, with new store additions being a key focus area. Instamart also launched a standalone app to foster brand identity alongside continued integration with Swiggy’s unified platform. Earlier, CEO Sriharsha Majety mentioned that they expect growth over the next 3 to 5-year horizon. Currently, they have 1,062 dark stores with a store area of 4.30 million square feet as of Q1FY26. The expansion of stores is backed by funds raised in the recent IPO and stake sales.

Swiggy’s operational restructuring, successful stake monetization, and ongoing market share gains reaffirm its rapid transformation from a food delivery pioneer to a formidable quick commerce conglomerate. Instamart, now operating as a distinct subsidiary, continues to lead growth, shape consumer convenience, and drive new strategic initiatives in India’s evolving delivery ecosystem.