(Reuters) -Indian food and grocery delivery platform Swiggy said on Tuesday it would offload its entire 12% stake worth $270 million in ride-hailing platform Rapido.
The stake sale comes as Rapido forays into food delivery business, which was acknowledged by Swiggy as a “potential conflict of interest” and also lead to revaluation.
Dutch investment firm Prosus NV’s unit will buy shares worth 19.68 billion rupees ($221.63 million) from Swiggy. The remaining stake will be acquired by U.S.-based Westbridge for 4.3 billion rupees.
Swiggy gets almost two-and-a-half-fold return on its initial investment of 9 billion rupees in Rapido.
Last month, Moneycontrol reported that Swiggy had initiated the process of divesting its stake in the startup.
($1 = 88.7950 Indian rupees)
(Reporting by Urvi Dugar; Editing by Maju Samuel)
