Accel backs Uber rival Rapido as Prosus boosts stake

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

On Thursday, TVS Motor said successful a banal speech filing (PDF) that it has sold its full involvement successful Rapido for ₹2.88 cardinal (about $32 million) to Accel and Prosus’ concern unit, MIH Investments, securing a instrumentality of much than 152% implicit the past 3 years.

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

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

As portion of the latest transaction, Accel purchased 11,997 penchant shares successful Rapido, portion 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 instrumentality to India’s ride-hailing assemblage for the firm, which was an aboriginal capitalist successful Ola. The determination comes arsenic Rapido is successful talks with Accel and Prosus for a caller superior backing circular that could adjacent adjacent year, according to 2 radical acquainted with the substance who spoke to TechCrunch. The nonstop backing size has yet to beryllium determined.

Prosus is already an capitalist successful Rapido and expanded its involvement done different secondary stock merchantability 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 aboriginal backers of Swiggy, which exited Rapido aft citing a imaginable struggle of interest, arsenic the ride-hailing startup prepared to grow into the food-delivery market.

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