Bengaluru: On demand facility firms on Thursday, it said it would re-evaluate its investment in the startup of the startup Rapido, citing a possible conflict of interest in the future, as the mobility company recently entered the food delivery segment. “Rapido is now the largest mobility player in India through rides, and was a disruptor in his space. As a shareholder, we are very happy with their success and value creation; but acknowledge a possible clash of interests that may arise in the future,” Swiggy said in his letter to shareholders. “Our interest of ~ 12% has appreciated significantly since our investment (base incoming interest) and we actively evaluate our investment as a result of the above developments.” Swiggy led a $ 180 million investment in Rapido in April 2022 for an almost 12% stake, making it the biggest check in a start of the food and grocery delivery firm. The agreement is expected to help swiggy find synergies with Rapido’s riders, who could also provide food. On the investment of the company in Rapido, Swiggy, co-founder and CEO (CEO), Sriharsha Majety, said in April: “While we have already worked together, this investment facilitates the value of both the country and executive managers/captains across the country.” Rapido charge a flat fee per order by a pilot named ‘Ewnies’ in Bengaluru in June. Competition in the food delivery segment is increasing, which requests regular food service companies to prepare items for shorter delivery time lines. Mint reported earlier how ten minutes of food deliveries for many established and new players appeared as a top proposition. Fast trading platforms also joined the wagon wheel. Zepto was the first among peers to start a fast food delivery service in 2022, Zepto Cafe. It launched an independent app for its food business in December last year. In November, Swish, based on Bengaluru, raised $ 2 million from venture capital Firmaccel and other investors. Swish was founded in August 2024. Swiggy’s net loss in the June quarter doubled year-on-year to £ 1.197, which was weighed by accelerated investments in its fast trade arm to keep up with rising competition. The company’s consolidated turnover during the quarter revised amounted to £ 4.961 crore versus £ 3.222 crore in the same period a year earlier.
Swiggy to re-evaluate Rapido interest with reference to possible conflict of interest | Company Business News
