Accel Invests in Rapido, India's Fastest-Growing Uber Rival

Accel Invests in Indian Ride-Hailing Platform Rapido, Prosus Boosts Stake Accel, a prominent venture capital firm, has made a significant investment in Rapido, a rapidly growing ride-hailing platform competing with Uber in India. This move comes as Prosus, a leading investment unit, has increased its stake in the company following the sale of its entire holding by Indian two-wheeler giant TVS Motor. The transaction has seen TVS Motor secure a substantial return of over 152% on its investment made three years ago. According to a stock exchange filing by TVS Motor, the company has sold its entire stake in Rapido to Accel and Prosus' investment unit, MIH Investments, for approximately $32 million. This sale represents a significant return on investment for TVS Motor, which initially purchased its stake in Rapido for $1.14 billion in April 2022 as part of the company's $180 million Series D funding round. Rapido, founded in 2015, has emerged as a major player in India's ride-hailing market, competing with established players such as Uber, Ola, and inDrive. The company has expanded its services beyond bike taxis to include auto-rickshaw bookings, car services, and courier services. More recently, Rapido has been piloting a food-delivery service in select cities, entering a segment dominated by Swiggy and Zomato. The investment by Accel and the increased stake by Prosus are significant developments in the Indian ride-hailing market. These moves signal the growing interest of investors in the sector, particularly in companies that are expanding their services and gaining traction with consumers. Rapido's growth and expansion plans are likely to be supported by the additional funding, enabling the company to further compete with established players in the market. Rapido's success is also a testament to the growing demand for ride-hailing services in India, driven by increasing urbanization and a growing middle class. The company's ability to adapt to changing consumer needs and expand its services has been a key factor in its growth. With the investment by Accel and the increased stake by Prosus, Rapido is well-positioned to continue its growth trajectory and remain a major player in the Indian ride-hailing market. The investment by Accel and Prosus also highlights the growing importance of the Indian ride-hailing market, which is expected to continue growing in the coming years. As the market becomes increasingly competitive, companies like Rapido will need to continue innovating and expanding their services to remain ahead of the curve. With the additional funding, Rapido is well-equipped to take on this challenge and continue its growth trajectory.