TVS Motor Company has exited its investment in bike-taxi platform Rapido by selling its entire shareholding for ₹287.93 crore. The monetisation move comes through agreements with Accel India VIII (Mauritius) Limited and MIH Investments One BV, an entity of Prosus. The development marks a complete withdrawal of the automobile manufacturer from the Bengaluru-based mobility startup.
According to a regulatory filing, TVS Motor will sell 11,997 Series D compulsory convertible preference shares to Accel for ₹143.96 crore. In a parallel transaction, MIH Investments One BV will acquire 10 equity shares and 11,988 Series D CCPS for ₹143.97 crore. The company noted that the deal aligns with routine portfolio management decisions and marks closure of its exposure to Rapido.
TVS Motor entered a strategic partnership with Rapido in 2022 to collaborate on opportunities in the commercial mobility ecosystem. The company had previously stated that the alliance could support shared mobility expansion in India by leveraging TVS Motor’s product expertise and distribution network.
Strategic Exit Move
TVS Motor’s exit follows a similar move by food delivery major Swiggy. Earlier this year, Swiggy sold its 12 percent stake in Rapido for around ₹2,399 crore, reportedly earning 2.5x returns on its investment made less than four years ago. With two notable investors stepping aside, the shift signals changing positions among corporate backers within India’s mobility technology space.
Rapido continues to hold a strong footing in the bike-taxi and three-wheeler aggregation market. The segment has rapidly evolved amid growing demand for last-mile urban mobility options. While financial stakeholders adjust their exposure, the company is pushing deeper into operational growth.
Uber CEO Dara Khosrowshahi recently highlighted that Rapido has become a stronger competitor to Uber in India than Ola in the two-wheeler category. The remark underscores Rapido’s significant expansion across major cities, tapping into a market where fast and low-cost commuting remains critical.
Expansion and Innovation
Rapido has been diversifying beyond mobility aggregation. The company has launched a pilot for its standalone food delivery platform, Ownly, in select parts of Bengaluru. A larger rollout is expected by the end of November. This new segment indicates Rapido’s ambition to drive revenue from adjacent categories and reduce dependency on ride-hailing alone.
The company is also investing in technology-driven operational efficiencies, particularly in optimising routes, boosting driver productivity, and strengthening consumer engagement. In key markets, the brand remains focused on affordability and high-frequency commuting needs.
Despite strategic shareholder shifts, Rapido maintains investor support from leading global funds, local venture firms, and international operators betting on the future of India’s mobility landscape.
Rapido Business Model
Rapido follows a marketplace model that connects riders with captains operating two-wheelers and auto-rickshaws. The company earns revenue through commission on each ride booked on its platform. It targets short-distance, high-repeat travel patterns, especially in densely populated city zones where public transport remains crowded or fragmented.
Its network expansion relies on scaling driver enrollments, pricing efficiency, and rapid onboarding across new geographies. The startup has also focused on tier-II and tier-III markets to tap into a wider user base and strengthen adoption where bike-taxis are increasingly recognised as a practical daily commuting option.
As Rapido broadens its presence, competition continues to intensify in the mobility aggregation sector. The company’s strategy now appears positioned around multi-category offerings and deeper market penetration.
