Accel and Prosus are doubling down on India’s booming ride-hailing market. The two major investors have backed Rapido, the fast-growing mobility startup taking on Uber and Ola, following TVS Motor Company’s exit from the firm. Accel has joined as a new investor, while Prosus has increased its existing stake, a move that signals growing confidence in Rapido’s expansion and India’s urban mobility future.
According to a stock exchange filing, TVS Motor sold its full stake in Rapido to Accel and Prosus’ investment arm, MIH Investments, for ₹2.88 billion (around $32 million). The sale delivered the automaker a return of more than 152% in just three years, highlighting the rising value of India’s homegrown ride-hailing startups.
Founded in 2015, Rapido started as a bike-taxi platform, allowing users to book two-wheeler rides in congested Indian cities. Over time, it expanded into auto-rickshaw bookings, car rides, and even courier delivery services. The company is now testing a food-delivery pilot in select cities, a bold step that brings it into competition with giants like Swiggy and Zomato.
Rapido’s strategy has centered on affordability, quick mobility, and city-specific services tailored for India’s urban population. Its expansion into multi-modal transport has helped it carve out a loyal user base across major metros, including Bengaluru, Hyderabad, and Delhi.
TVS Motor first invested in Rapido during its Series D round in April 2022, when the startup raised $180 million. Other investors in that round included WestBridge Capital, Shell Ventures, and Nexus Venture Partners. TVS acquired its stake for ₹1.14 billion at the time, marking a profitable exit with this new transaction.
As part of the latest deal, Accel purchased 11,997 preference shares, while Prosus acquired 11,988 preference shares and 10 equity shares in Rapido. Each investor paid around ₹1.44 billion (about $16 million).
For Accel, this marks a return to India’s mobility sector, where it had previously backed Ola in its early days. The investment reflects growing optimism around India’s urban transportation market and the rising demand for two-wheeler and three-wheeler mobility solutions.
Meanwhile, Prosus, already one of Rapido’s largest backers, has been steadily increasing its stake. In September, it acquired additional shares from Swiggy, which sold its entire holding due to potential conflicts with Rapido’s expansion into food delivery. That deal reportedly doubled Rapido’s valuation to $2.3 billion, signaling strong investor confidence.
Rapido is now in talks with both Accel and Prosus for a new primary funding round expected to close next year, according to people familiar with the matter. The exact size of the round hasn’t been finalized, but sources indicate it will be aimed at fueling nationwide expansion and strengthening the company’s delivery and logistics network.
The funding discussions come amid an increasingly competitive market, where global and domestic players are pushing deeper into AI-driven ride matching, dynamic pricing, and last-mile logistics. Rapido’s focus on affordability and localized services gives it a distinct edge in smaller Indian cities where Uber and Ola have struggled to scale efficiently.
India’s mobility sector has evolved significantly over the past decade. What began as an urban convenience is now part of a broader ecosystem that includes logistics, food delivery, and hyperlocal transport.
Rapido’s growing footprint mirrors this shift. The company has more than 25 million app downloads and continues to attract both drivers and passengers with its flexible earnings model and lower commission rates.
Accel’s re-entry also underscores a broader trend: global investors are once again eyeing India’s mobility and delivery tech sectors as infrastructure improves and consumer demand rebounds.
For Prosus, which holds stakes in several Indian unicorns, including Swiggy, Byju’s, and Meesho, increasing its share in Rapido aligns with its long-term strategy to back platforms serving mass-market consumers across emerging economies.
While neither Accel nor Prosus has commented on the deal, the message is clear, Rapido has emerged as India’s leading challenger to Uber and Ola, with ambitions that extend beyond just ride-hailing. Its push into logistics and food delivery could turn it into a super-app for urban mobility, bridging transport, commerce, and everyday convenience.
If the upcoming funding round materializes, Rapido could use the new capital to expand into tier-2 cities, invest in electric vehicle fleets, and enhance AI-driven route optimization, all areas that align with India’s growing emphasis on sustainable urban transport.
For now, TVS Motor exits with impressive returns, while Accel and Prosus deepen their hold on one of India’s most promising consumer tech stories.
