Swiggy CFO’s Take on Rapido Stake Re-evaluation
Rahul Bothra, chief financial officer of Swiggy, shared insights on the company’s decision to reassess its investment in Rapido. In an exclusive conversation with NDTV Profit, Bothra emphasized the strategic nature of their initial investment in Rapido, aiming to explore potential advantages in the delivery sector.
Challenges and Experiments
Bothra mentioned that despite conducting several experiments, the anticipated synergy between Swiggy and Rapido did not materialize as expected. The company’s focus was on leveraging delivery capabilities, but the outcomes fell short of their projections.
Interest in Stake Purchase
Regarding the current scenario, Swiggy is witnessing significant interest from potential buyers for their stake in Rapido. Bothra hinted at an impending decision on the matter, indicating that a resolution will be reached shortly.
Rapido’s Food Delivery Expansion
The reconsideration of Swiggy’s investment in Rapido comes in light of Rapido’s recent foray into the food delivery domain. This move has sparked concerns over conflicting interests between the two entities, prompting Swiggy to review its strategic partnerships.
As the market dynamics evolve, such decisions play a crucial role in shaping the competitive landscape and business strategies of key players like Swiggy and Rapido.
Source: NDTV Business
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