Accel Invests in Rapido as TVS Motor Sells Entire Stake to Accel and Prosus
- ByStartupStory | November 9, 2025
Indian ride-hailing and urban mobility startup Rapido has attracted fresh investment from Accel Partners, one of India’s most renowned venture capital firms, as TVS Motor Company divests its entire stake in the business. The strategic secondary transaction saw Accel and Dutch investment giant Prosus acquire shares worth ₹288 crore (about $33 million) from the Chennai-based automaker, marking the second major investor exit from Rapido this year.
TVS Motor Company, which first backed Rapido in April 2022 as part of a $180 million Series D round, secured a return of more than 152% over three years with this sale. The deal saw Accel acquire 11,997 preference shares and Prosus acquire an equal allocation of preference shares plus 10 equity shares. Completion of the transaction is subject to regulatory approvals.
Rapido, founded in 2015, has evolved into a major player in India’s urban mobility sector, expanding beyond bike taxis into auto-rickshaw and car bookings, as well as courier and pilot food delivery services. The company is now reportedly in talks with Accel and Prosus for a substantial new funding round expected to close next year, following a recent transaction that doubled its valuation to $2.3 billion after Swiggy exited with a 2.5x return on its investment.
Accel’s investment marks a significant return to the ride-hailing space, having previously backed Ola in its early years. This commitment signals renewed confidence in Rapido’s business model and its ambitions for growth in India’s urban mobility and logistics market. Prosus, already an investor in Rapido, continues to amplify its stake as part of its expanding mobility portfolio.
The fresh capital is set to fuel Rapido’s ongoing expansion, particularly in new verticals such as last-mile delivery and food services, where the startup is piloting service offerings in select cities to take on entrenched players like Swiggy and Zomato. Rapido’s next funding round, pegged at around $550 million, is expected to combine primary and secondary transactions, further strengthening its capacity to scale operations nationwide.
In summary, Accel’s investment and TVS Motor’s strategic exit highlight Rapido’s momentum in India’s competitive ride-hailing and delivery space, with robust backing from global investors supporting its next phase of growth.
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