Accel backs Uber rival Rapido as Prosus boosts stake

Core Insights - Accel has invested in Rapido, a ride-hailing platform in India, while Prosus has increased its stake after TVS Motor sold its entire holding for ₹2.88 billion (approximately $32 million), achieving a return of over 152% in three years [1][3]. Company Overview - Founded in 2015, Rapido has become a significant competitor in India's ride-hailing market, initially starting with bike taxis and later expanding into auto-rickshaw bookings, car services, and courier services. Recently, it has begun piloting a food-delivery service in select cities [2]. Investment Details - TVS Motor first invested in Rapido in April 2022 during a $180 million Series D funding round, acquiring its stake for ₹1.14 billion [3]. - In the latest transaction, Accel purchased 11,997 preference shares, while Prosus acquired 11,988 preference shares and 10 equity shares, with both investors paying approximately ₹1.44 billion (around $16 million) each [4]. Market Position and Valuation - Prosus has previously expanded its stake in Rapido through a secondary share sale in September, which doubled Rapido's valuation to $2.3 billion [6]. Future Prospects - Rapido is in discussions with Accel and Prosus for a new primary funding round expected to close next year, although the exact funding size is yet to be determined [5].