Accel backs Uber rival Rapido as Prosus increases its bet | TechCrunch

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 said in a Thursday scholarship application (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, earning a return of more than 152% over the past three years.

Founded in 2015, Rapido has emerged as a major player in the Indian taxi market, competing with Uber, Ola and InDrive. The company started with bike taxis before expanding into auto-rickshaw bookings and car services, and has also added courier services to its platform. It recently launched 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. According to previous information, the automaker bought its stake for ₹1.14 billion at the time disclosures to investors (PDF file).

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

Accel’s support for Rapido marks a return to the Indian taxi sector for the company. 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 amount of funding has yet to be determined.

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

Accel and Prosus are also early backers of Swiggy, which left Rapido after citing a potential conflict of interest as the 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.