Accel Backs Indian Ride-Hailing Challenger Rapido, Prosus Deepens Investment

Accel and Prosus Invest in Indian Ride-Hailing Platform Rapido, Securing Significant Returns for TVS Motor In a significant move, Accel has invested in Rapido, the Indian ride-hailing platform competing with Uber, while Prosus has increased its stake in the company. This development comes after Indian two-wheeler giant TVS Motor sold its entire holding in Rapido for $32 million to Accel and Prosus' investment unit, MIH Investments. The sale has secured a return of over 152% for TVS Motor over the past three years. The financial details of the transaction reveal that TVS Motor initially invested $1.14 billion in Rapido as part of the company's $180 million Series D round in April 2022. The automaker's stake in Rapido was valued at $1.14 billion at that time. The latest sale has seen TVS Motor secure a significant return on its investment, highlighting the growth potential of the Indian ride-hailing market. The Indian ride-hailing market has witnessed significant growth in recent years, with companies like Uber, Ola, and inDrive competing for market share. Rapido, founded in 2015, has emerged as a major player in this space, offering a range of services including bike taxis, auto-rickshaw bookings, car services, and courier services. The company has also been piloting a food-delivery service in select cities, entering a segment dominated by Swiggy and Zomato. Rapido's growth can be attributed to its ability to adapt to changing consumer preferences and expand its services to cater to diverse needs. The company's focus on two-wheeler-based services has helped it maintain a competitive edge in the Indian market. With the investment from Accel and Prosus, Rapido is well-positioned to continue its growth trajectory and expand its services further. The investment by Accel and Prosus is also a testament to the growing importance of the Indian ride-hailing market. The two companies have a strong track record of investing in growth-stage startups, and their involvement in Rapido is likely to provide the company with the necessary resources to scale its operations and expand its reach. As the Indian ride-hailing market continues to grow, companies like Rapido are likely to play a significant role in shaping the future of transportation in the country. With the investment from Accel and Prosus, Rapido is well-positioned to capitalize on this growth and emerge as a major player in the Indian ride-hailing market.