TVS Motor to Sell Rapido Stake to Accel India, MIH Investments
TVS Motor Company is divesting its entire stake in bike-taxi aggregator Rapido for ₹287.93 crore, marking a complete exit from their strategic partnership established in 2022. The two- and three-wheeler manufacturer has signed agreements with Accel India VIII (Mauritius) Limited and MIH Investments One BV to sell its holdings in Roppen Transportation Services Pvt Ltd, Rapido's parent company. The completion of this transaction is contingent upon the buyers securing the necessary regulatory approvals.
The details of the stake sale involve TVS Motor divesting 11,997 Series D Compulsory Convertible Preference Shares (CCPS) to Accel India VIII (Mauritius) for ₹143.96 crore. Additionally, the company will sell 10 equity shares and 11,988 Series D CCPS to MIH Investments One BV for ₹143.97 crore.
In 2022, TVS Motor entered into a strategic partnership with Rapido to explore collaborations within the commercial mobility and on-demand delivery ecosystem. This stake sale signifies a complete exit from that earlier tie-up. The move is part of TVS Motor's strategy to monetize its investment in Rapido, with the transaction's consideration exceeding the materiality threshold as per regulatory requirements.
This marks the second complete exit by a major investor from Rapido. Recently, food-tech major Swiggy exited the company, selling its approximately 12% stake for around ₹2,399 crore. Swiggy had cited potential conflicts of interest with Rapido's mobility and delivery ambitions as one of the reasons for its exit.
Rapido has been gaining strong traction in India's mobility market. Recently, Uber CEO Dara Khosrowshahi said that Rapido has become a bigger rival to Uber in India than Ola, highlighting its growing presence in the two- and three-wheeler mobility segment. In August, Rapido also launched a pilot of its standalone food delivery app Ownly in select neighborhoods like Koramangala and HSR Layout in Bengaluru and is reportedly gearing up for a wider launch by the end of November.
