Accel Backs Uber Rival Rapido As Prosus Boosts Stake

Accel has invested successful Rapido, nan ride-hailing level competing pinch Uber successful India, while Prosus has accrued its stake, aft Indian two-wheeler elephantine TVS Motor sold its full holding.

On Thursday, TVS Motor said successful a stock speech filing (PDF) that it has sold its full liking successful Rapido for ₹2.88 cardinal (about $32 million) to Accel and Prosus’ finance unit, MIH Investments, securing a return of much than 152% complete nan past 3 years.

Founded successful 2015, Rapido has grown into a awesome subordinate successful India’s ride-hailing market, competing pinch Uber, Ola, and InDrive. The institution began pinch motorcycle taxis earlier expanding into auto-rickshaw bookings and car services, and has besides added courier services to its platform. It has much precocious been piloting a food-delivery service successful prime cities, entering a conception dominated by Swiggy and Zomato.

TVS Motor first invested successful Rapido successful April 2022 arsenic portion of nan company’s $180 cardinal Series D round, joining existing backers specified arsenic WestBridge Capital, Shell Ventures and Nexus Venture Partners. The automaker bought its liking astatine that clip for ₹1.14 billion, according to its earlier investor disclosures (PDF).

As portion of nan latest transaction, Accel purchased 11,997 penchant shares successful Rapido, while Prosus acquired 11,988 penchant shares and 10 equity shares. Both investors paid astir ₹1.44 cardinal (roughly $16 million) each.

Accel’s backing of Rapido marks a return to India’s ride-hailing assemblage for nan firm, which was an early investor successful Ola. The move comes arsenic Rapido is successful talks pinch Accel and Prosus for a caller superior backing information that could adjacent adjacent year, according to 2 group acquainted pinch nan matter who said to TechCrunch. The nonstop backing size has yet to beryllium determined.

Prosus is already an investor successful Rapido and expanded its liking done different secondary stock waste successful September, erstwhile Swiggy sold its full holding. That transaction doubled Rapido’s valuation to $2.3 billion, TechCrunch reported.

Accel and Prosus are besides early backers of Swiggy, which exited Rapido aft citing a imaginable conflict of interest, arsenic nan ride-hailing startup prepared to grow into nan food-delivery market.

Accel and Prosus did not respond to requests for comment. Rapido could not beryllium reached for comment.