TVS Sells Its Stake in Rapido
Rapido and TVS have again come into the spotlight after TVS Motor Company announced a complete exit from the bike-taxi startup. The automaker signed agreements to divest its entire stake in Rapido for ₹287.93 crore, marking a major strategic shift. The sale involves two buyers—Accel India VIII (Mauritius) Limited and MIH Investments One BV, an entity linked with Prosus. This move follows TVS Motor’s partnership with Rapido in 2022, which focused on commercial mobility and emerging mobility solutions.
TVS Motor disclosed in its exchange filing that it will sell 11,997 Series D CCPS to Accel for ₹143.96 crore. In the same transaction window, it will transfer 10 equity shares and an additional 11,988 Series D CCPS to MIH Investments for ₹143.97 crore. The combined value of the divestment reaches close to ₹288 crore.
A Second Major Investor Exit for Rapido
This full exit by TVS Motor comes shortly after another high-profile investor departure. Food-tech giant Swiggy sold its 12% stake in Rapido for roughly ₹2,399 crore. With a return of about 2.5x in under four years, Swiggy cited potential strategic conflicts as a key reason for stepping away. Rapido’s ambitions in both mobility and delivery increasingly overlap with Swiggy’s core operations.
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Despite these exits, Rapido’s performance in India’s mobility space continues to improve. Investor turnover appears more aligned with capital re-balancing than with operational challenges. The platform’s fast-growing presence has drawn industry attention, even from global leaders.
Rapido Emerges as a Strong Competitor in Mobility
In a recent statement, Uber CEO Dara Khosrowshahi said Rapido poses a fiercer challenge to Uber in India than Ola. This remark highlights Rapido’s strong foothold in the two-wheeler and three-wheeler categories—segments that offer faster mobility in congested Indian cities.
Rapido’s ability to expand across smaller vehicle formats has helped the company break into markets where car-based ride-hailing struggles. Riders benefit from shorter wait times and lower fares, while captains of two-and three-wheelers gain better earning opportunities.
Rapido and TVS: Shifting Strategies in a Rapidly Evolving Market
The relationship between Rapido and TVS saw active collaboration when TVS invested in the startup. Both companies explored shared objectives across electric mobility, fleet development and delivery use-cases. With the current exit, TVS Motor appears to be realigning its capital and operational priorities. Even without TVS as an investor, Rapido continues to deepen its market play and widen its service offerings.
Rapido Expands Beyond Mobility With Ownly App
Mobility remains Rapido’s core business, but the company is now preparing to scale its presence in the delivery ecosystem. In August, Rapido launched a pilot for Ownly, its standalone food-delivery app. The test phase started in Bengaluru’s Koramangala and HSR Layout, two tech-dense neighborhoods known for early adoption. According to industry reports, Rapido plans a broader rollout by the end of November.
This strategic move places Rapido in direct competition with Swiggy and Zomato. Early signs suggest Rapido aims to leverage its extensive rider network for faster and more cost-efficient local deliveries.
What the Deal Means for the Future
TVS Motor’s exit from Rapido reflects shifting dynamics in India’s mobility and delivery sectors. Capital rotation among investors is normal as startups grow, diversify and realign. Rapido’s rising influence, its mobility dominance, and its bold venture into food delivery suggest that the company is preparing for a larger national footprint.
While TVS steps back financially, Rapido continues to accelerate its roadmap. The company’s operational momentum, strengthened brand presence, and expanding service portfolio set the stage for more aggressive market competition in the coming years.