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Accel invests in Rapido as TVS Motor sells stake
Accel has invested in Rapido, an Indian ride-hailing platform, while Prosus has increased its stake after TVS Motor sold all its shares for about US$32 million.
Rapido, founded in 2015, competes with Uber, Ola, and inDrive in India’s ride-hailing market and has expanded from bike taxis to include auto-rickshaw, car services, and courier deliveries.
TVS Motor first acquired its stake in Rapido in April 2022 and realized a return of more than 152% over three years.
Accel and Prosus each paid roughly US$16 million for their new shares in the latest transaction.
Prosus had previously expanded its stake in Rapido through a secondary share sale in September, which pushed Rapido’s valuation to US$2.3 billion, according to TechCrunch.
Rapido is reportedly in discussions with Accel and Prosus for a new funding round that may close next year, though the funding size has not been finalized.
🔗 Source: TechCrunch
🧠 Food for thought
Implications, context, and why it matters.
Rapido’s unit economics stay unclear
- For FY22 (fiscal year ending March 2022), Rapido posted Rs. 144.77 crores (about US$17 million) in revenue from operations while net losses rose to Rs. 439.02 crores (about US$53 million) 1. EBITDA (Earnings Before Interest/Taxes plus Depreciation/Amortization) came in at negative Rs. 433.75 crores 1.
- By March 31, 2023, cash fell from Rs. 66.94 crores to Rs. 9.33 crores while current liabilities (short‑term obligations) nearly doubled to Rs. 122.29 crores 1.
- Rapido held a US$2.3 billion valuation. Those figures predate 2024 raises, and Moneycontrol said the company joined the unicorn club after a US$120 million Series E (a late‑stage venture funding round) in July at about US$1.1 billion 2.
- Co‑founder, CEO Arvind Sanka said all segments run EBITDA‑positive and expects Profit After Tax (PAT) to turn positive within months 2.
Electric vehicle suppliers can benefit from state EV mandates
- Maharashtra’s 2025 Electric Bike Taxi Policy requires 100% electric vehicles for licensed bike taxis while Delhi targets full electrification by 2030 32.
- Rapido targets a 100% electric fleet in Delhi within a year with Zypp Electric (last‑mile EV logistics) and Gogoro (a battery‑swapping, electric two‑wheeler company) plus third‑party fleets, up from 25% today 2.
- EV makers, battery‑swapping networks, and fleet financiers across 21 states with bike taxi rules can focus on markets with firm EV mandates 4.
- Two‑wheelers make up 75% of India’s motorized fleet, which eases electrification versus cars due to lighter frames plus simpler infrastructure needs 4.
