Bengaluru-based ride-hailing startup Rapido is close to sealing a major funding round of around 500–550 million Dollars (roughly Rs 4,500–5,000 crore) through a mix of primary and secondary deals.In a striking move, Swiggy which held an 11.8 percent equity stake in Rapido is pulling out completely.

This development marks a clear separation between the two companies that once appeared linked through strategic investment. Swiggy’s exit suggests it sees Rapido’s foray into the food delivery space as a direct conflict of interest. Moreover, Swiggy’s stake sale will serve as a liquidity event for itself, allowing it to reallocate resources into parts of its business it deems more core.

Rapido, for its part, is leveraging the fresh capital to accelerate expansion, especially in mobility and potentially adjacent segments.Its valuation is likely to see a boost with this round, and existing investors may also look to bolster their holdings.

Analysts, however, point out that Swiggy’s exit is only a short-term fix for its own cash challenges. Reports suggest the company will still need further capital infusions to maintain momentum in the competitive quick commerce business. In the bigger picture, this funding push underscores Rapido’s ambition to scale rapidly and perhaps reposition itself not just as a mobility player but as a broader tech platform. For Swiggy, the move is a recalibration shedding a potential competitor to sharpen its focus.