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Accel backs Uber rival Rapido as Prosus boosts stake
Accel has invested in Indian ride-hailing startup Rapido, while Prosus has increased its stake after TVS Motor sold its entire holding for ₹2.88 billion. Founded in 2015, Rapido has expanded from bike taxis to auto-rickshaw and courier services and is piloting food delivery. This move follows a trend of significant investments in India's ride-hailing market, negatively impacted by increasing competition.
Key points
- Accel invests in Rapido as part of a trend in Indian ride-hailing.
- Prosus increases stake in Rapido after TVS Motor sells its entire holding, profiting 152% over three years.
- Founded in 2015, Rapido competes with Uber, Ola, and InDrive; began with bike taxis and expanded services.
- Rapido pilots food delivery, competing with established players Swiggy and Zomato.
- Both Accel and Prosus invested ₹1.44 billion each for preference and equity shares.
- Rapido's valuation doubles to $2.3 billion after secondary sales, indicating potential for growth.
Why it matters
- Investments in ride-hailing continue to be significant as competition grows in India.
- The shift of players like Swiggy in the food delivery space may indicate broader trends in food-tech.
- The ride-hailing market in India is evolving with companies diversifying into various transportation and delivery services.
The recent investments by Accel and Prosus in Rapido highlight the ongoing evolution and competition in India's ride-hailing sector, suggesting a robust growth trajectory despite market challenges.