**Rapido Attracts New Investment from Accel and Prosus as TVS Motor Exits**
India’s rapidly evolving ride-hailing market has witnessed a significant development, as global venture capital firm Accel has invested in Rapido, while Prosus, an existing investor, has increased its stake. This move follows the complete exit of TVS Motor, a prominent Indian two-wheeler manufacturer, which has sold its entire holding in Rapido, marking a notable reshuffle among the company’s key stakeholders.
**TVS Motor Sells Its Stake for a Substantial Return**
On Thursday, TVS Motor announced through a stock exchange disclosure that it had sold its entire shareholding in Rapido for ₹2.88 billion (approximately $32 million). The buyers of this stake were Accel and MIH Investments, the investment arm of Dutch technology investor Prosus. With this sale, TVS Motor secured a return of more than 152% on its investment over the past three years, underscoring the growth and rising valuation of Rapido in the Indian mobility sector.
TVS first became an investor in Rapido during the company’s Series D funding round in April 2022, when it acquired its stake for ₹1.14 billion. The recent sale thus represents a highly profitable exit for the automaker, reflecting both the potential and growing investor confidence in Rapido’s business model amid the fierce competition in India’s urban transportation market.
**Rapido’s Journey and Business Expansion**
Founded in 2015, Rapido initially entered the market as a bike taxi platform, offering affordable and efficient rides across Indian cities. As the company gained traction, it expanded into other segments such as auto-rickshaw bookings and car services. More recently, Rapido has added courier services to diversify its offerings.
In addition to its core ride-hailing business, Rapido has begun piloting a food delivery service in select Indian cities—a space currently dominated by major players Swiggy and Zomato. This move into food delivery represents a strategic attempt to leverage Rapido’s extensive urban logistics network and tap into the rapidly growing demand for online food ordering in India.
**Details of the Recent Investment**
The latest transaction saw Accel purchasing 11,997 preference shares in Rapido, while Prosus acquired 11,988 preference shares and 10 equity shares. Both investors paid about ₹1.44 billion each (roughly $16 million), further cementing their commitment to Rapido’s growth.
Accel’s investment in Rapido marks its return to the Indian ride-hailing sector. The firm was an early backer of Ola, one of Rapido’s main competitors. This renewed interest in the sector comes as Rapido is reportedly in discussions with both Accel and Prosus to raise fresh primary funding in the coming year. While the final size of this new funding round has yet to be determined, the involvement of such prominent investors signals strong expectations for Rapido’s future expansion.
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