Prosus raises investment, Accel backs Uber rival Rapido

Accel has invested in Rapido, a ride-hailing platform that competes with Uber in India, and Prosus increased its investment after Indian two-wheeler giant TVS Motor sold its entire stake.

TVS Motor said in a stock exchange filing (PDF) on Thursday that it has sold its entire stake in Rapido to MIH Investments, the investment arm of Accel & Prosus, for 2.88 billion rupees (approximately $32 million), securing a return of over 152% over the past three years.

Founded in 2015, Rapido has grown to become a major player in the Indian ride-hailing market, competing with Uber, Ola, and inDrive. The company started with motorcycle taxis, then expanded to autorickshaw booking and car services, and added courier services to its platform. It recently piloted food delivery services in select cities, entering a segment dominated by Swiggy and Zomato.

TVS Motor first invested in Rapido in April 2022 as part of the company’s $180 million Series D round, joining existing backers including WestBridge Capital, Shell Ventures, and Nexus Venture Partners. According to a previous investor disclosure (PDF), the automaker bought its shares at that time for Rs 1.14 billion.

As part of the latest transaction, Accel purchased 11,997 shares of Rapido’s preferred stock, and Prosus received 11,988 shares of preferred stock and 10 shares of common stock. Both investors paid approximately 1.44 billion rupees (approximately $16 million) each.

Accel’s support for Rapido marks the return of the company, which was an early investor in Ola, to the Indian ride-hailing sector. The move comes as Rapido is in talks with Accel and Prosus for a new primary funding round that could be completed next year, according to two people familiar with the matter who spoke to TechCrunch. The exact size of the funding has not yet been determined.

Prosus was already an investor in Rapido and expanded its stake through another secondary stake sale in September when Swiggy sold its entire stake. The deal doubles Rapido’s valuation to $2.3 billion, TechCrunch reported.

Accel and Prosus were also early backers of Swiggy, which withdrew from Rapido over potential conflicts of interest as the ride-hailing startup prepared to expand into the food delivery market.

Axel and Prosus did not respond to requests for comment. Lapid could not be reached for comment.