Accel backs Uber rival Rapido while Prosus boosts its share

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

TVS Motor on Thursday said in a stock exchange filing (PDF) that it has sold its entire stake in Rapido for 2.88 billion Indian rupees (about $32 million) to the investment unit of Accel and Prosus, 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 started with bike taxis before expanding into rickshaw bookings and auto services, and also added courier services to its platform. It recently trialled food delivery 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 the time for INR 1.14 billion, according to previous investor disclosures (PDF).

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

Accel’s backing of Rapido marks a return to the ride-hailing segment in India for the company, which was an early investor in Ola. The move comes as Rapido is in talks with Accel and Prosus about a new seed funding round that could close next year, according to two people familiar with the matter who spoke to TechCrunch. The exact amount of funding has not yet been determined.

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

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.