Accel Invests In Uber Rival Rapido As Prosus Increases Stake After TVS Motor Exit

Accel has invested in Rapido, India’s fast-growing ride-hailing startup that competes directly with Uber, while Prosus has also increased its holding after TVS Motor sold its entire stake.

In a stock exchange filing on Thursday, TVS Motor confirmed that it sold its entire interest in Rapido for ₹2.88 billion (around $32 million) to Accel and Prosus’ investment arm, MIH Investments. The automaker said the sale generated a return exceeding 152% in just three years.

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Founded in 2015, Rapido has emerged as a strong competitor in India’s mobility sector, taking on giants like Uber, Ola, and inDrive. Initially launched as a bike taxi platform, the company has since expanded into auto-rickshaw bookings, car rides, and courier services.

It has also begun testing a food-delivery service in selected cities — a space largely dominated by Swiggy and Zomato.

Accel’s Return to India’s Ride-Hailing Market

TVS Motor first invested in Rapido in April 2022 during its $180 million Series D funding round, joining existing investors such as WestBridge Capital, Shell Ventures, and Nexus Venture Partners.

The company had bought its stake for ₹1.14 billion at the time, according to previous investor disclosures.

In the latest deal, Accel acquired 11,997 preference shares in Rapido, while Prosus bought 11,988 preference shares and 10 equity shares. Both investors paid approximately ₹1.44 billion (about $16 million) each.

Accel’s renewed involvement in India’s ride-hailing space marks its comeback after being one of the earliest investors in Ola.

Sources told TechCrunch that Rapido is currently in talks with both Accel and Prosus for a fresh funding round expected to close next year, though the final investment size remains undecided.

Prosus Strengthens Its Position in Rapido

Prosus, which already holds a stake in Rapido, increased its ownership further through a secondary share sale in September when Swiggy divested its entire holding. That transaction reportedly doubled Rapido’s valuation to $2.3 billion.

Interestingly, both Accel and Prosus are also early backers of Swiggy. The food-delivery giant’s exit from Rapido was seen as a strategic move to avoid a potential conflict of interest, as Rapido explores its own food-delivery ambitions.

Accel and Prosus declined to comment on the deal, while Rapido has not yet responded to media queries.

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