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

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rel=”dofollow” href=”https://economictimes.indiatimes.com/swiggy-ltd/stocks/companyid-2232501.cms” target=”_blank”>Swiggy cannot adequately address its balance sheet woes solely by selling its stake in Rapido, brokerage firm rel=”dofollow” href=”https://economictimes.indiatimes.com/jm-financial-ltd/stocks/companyid-12633.cms” target=”_blank”>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….



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



rel=”dofollow” href=”https://economictimes.indiatimes.com/swiggy-ltd/stocks/companyid-2232501.cms” target=”_blank”>Swiggy cannot adequately address its balance sheet woes solely by selling its stake in Rapido, brokerage firm rel=”dofollow” href=”https://economictimes.indiatimes.com/jm-financial-ltd/stocks/companyid-12633.cms” target=”_blank”>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….



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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