jm financial: Rapido stake sale temporary solution for Swiggy cash burn, says JM Financial

Swiggy cannot adequately address its balance sheet woes solely by selling its stake in Rapido, brokerage firm JM Financial said in a note on Wednesday. The food delivery aggregator needs a much larger fundraise of over $500 million — on top of the Rapido stake sale — to support its long-term ambitions in quick commerce, it said.

On Tuesday, Swiggy told the exchanges it will sell its 11.8% stake in Rapido to Prosus and WestBridge Capital for Rs 2,400 crore. Doing so will give it a 2.4 times return on its 2022 investment in the ride-hailing company….