Accel backs Uber rival Rapido as Prosus boosts stake

Accel has invested in Rapido, the ride-hailing platform competing with Uber in India, while Prosus has increased its stake, after Indian two-wheeler giant TVS Motor sold its entire holding.

On Thursday, TVS Motor said in a stock exchange filing (PDF) that it has sold its entire stake in Rapido for ₹2.88 billion (about $32 million) to Accel and Prosus’ investment unit, MIH Investments, securing a return of more than 152% over the past three years.

Founded in 2015, Rapido has grown into a major player in India’s ride-hailing market, competing with Uber, Ola, and InDrive. The company began with bike taxis before expanding into auto-rickshaw bookings and car services, and has also added courier services to its platform. It has more recently been piloting a food-delivery service 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 such as WestBridge Capital, Shell Ventures and Nexus Venture Partners. The automaker bought its stake at that time for ₹1.14 billion, according to its earlier investor disclosures (PDF).

As part of the latest transaction, Accel purchased 11,997 preference shares in Rapido, while Prosus acquired 11,988 preference shares and 10 equity shares. Both investors paid about ₹1.44 billion (roughly $16 million) each.

Accel’s backing of Rapido marks a return to India’s ride-hailing sector for the firm, which was an early investor in Ola. The move comes as Rapido is in talks with Accel and Prosus for a new primary funding round that could close next year, according to two people familiar with the matter who spoke to TechCrunch. The exact funding size has yet to be determined.

Prosus is already an investor in Rapido and expanded its stake through another secondary share sale in September, when Swiggy sold its entire holding. That transaction doubled Rapido’s valuation to $2.3 billion, TechCrunch reported.

Accel and Prosus are also early backers of Swiggy, which exited Rapido after citing a potential conflict of interest, as the ride-hailing startup prepared to expand into the food-delivery market.

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