Three years after the strategic partnership, TVS Motor Company has decided to divest its shares in the Bengaluru-based ride-hailing startup Rapido. The two-and-three-wheeler maker will sell its stake in Rapido to investment firms Accel India and Prosus for Rs 287.93 crore.
TVS Motor said it will sell 11,997 Series D compulsory convertible preference shares (CCPS) of Rapido to Accel India VIII (Mauritius) Ltd for Rs 143.96 crore. It will also divest another 11,998 Series D CCPS and 10 equity shares to MIH Investments for Rs 144.97 crore. MIH is a subsidiary of Dutuch venture capital Prosus.
The stake sale comes as Rapido has rapidly expanded its operations over the past year. The company entered the food delivery segment earlier this year and later ventured into travel tech through partnerships with several online travel aggregators. At the same time, it has reinforced its presence in India’s ride-hailing market, emerging as a strong rival to Uber and Ola.
TVS Motor entered into a partnership with Rapido in 2022 to collaborate in commercial mobility and delivery services. In October, food tech major Swiggy said it will sell its stake to Westbridge and Prosus for Rs 2,400 crore.