As Rapido’s valuation more than doubles and rivalry with Uber intensifies, Prosus looks to deepen its stake through primary and secondary deals.
Prosus Plans to Boost Stake in Rapido With $200 Million Deal
Dutch investment giant Prosus is in advanced talks to invest around $200 million (~₹1,750 crore) in Rapido, the Indian ride-hailing and delivery startup, according to sources familiar with the matter.
- The potential investment could take the form of primary capital, secondary share purchases, or a combination of both.
- The total round size may increase, depending on how the deal structure unfolds.
Prosus currently owns 3–4% of Rapido but is now bullish on expanding its stake, encouraged by the startup’s surging growth, diversified revenue streams, and rising market dominance.
Rapido’s Valuation Doubles in 8 Months
Sources peg Rapido’s current valuation at $2.5–$2.7 billion, a sharp jump from $1.1 billion in December 2024.
- The ride-hailing company has witnessed accelerated growth, expanding into food delivery, and hitting a $2 billion GMV milestone—double from the previous year.
- It now claims 50 million monthly active users (MAUs), surpassing Uber India’s 30 million, according to a Citi analyst report.
Strategic Timing: Swiggy Looks to Exit
The development also comes as Swiggy, a key Prosus-backed company, seeks to sell its entire 12% stake in Rapido, potentially raising $300 million (~₹2,500 crore).
- Swiggy had invested $120 million in 2022.
- The move reflects a conflict of interest, as Rapido recently forayed into food delivery, directly clashing with Swiggy’s core business.
If Prosus participates in the secondary sale, it could absorb part or all of Swiggy’s stake, further consolidating its position.
A Vote of Confidence From Prosus Leadership
Prosus CEO Fabricio Bloisi has publicly praised Rapido as a standout example of local innovation with global potential.
“India should be proud about Meesho and Rapido… their cost structure enables them to serve a billion customers. We want to help them move faster with global insights,” Bloisi said in an earlier interview.
His comments indicate deep strategic alignment, beyond just capital investment, as Prosus looks to help Rapido scale globally and adopt international best practices.
Rapido Emerging as Uber’s Main Rival in India
While Ola previously dominated India’s ride-hailing sector alongside Uber, recent shifts suggest Rapido has overtaken Ola in relevance.
- Uber CEO Dara Khosrowshahi recently named Rapido—not Ola—as their biggest competitor in India.
- Though Uber India still led in revenue in FY24 (₹807 crore vs. Rapido’s ₹648 crore), Rapido’s faster GMV growth and user base expansion hint at an impending lead shift.
Rapido’s Funding History and Investor Landscape
Founded in 2015, Rapido has raised over $500 million to date from investors including:
- WestBridge Capital
- Nexus Venture Partners
- Shell Ventures
- Swiggy (now exiting)
- Prosus (increasing stake)
If the $200 million round closes as expected, it will be one of Rapido’s largest fundraises, further cementing its position in India’s high-growth mobility and delivery sectors.
What’s Next?
If Prosus successfully increases its stake:
- It will solidify its influence over one of India’s fastest-growing tech startups.
- It may also reshape the competitive landscape, especially in tier-2 and tier-3 markets where Rapido thrives.
- Analysts expect this to pave the way for a possible IPO or further global expansion, leveraging Prosus’ reach in Brazil, Europe, Africa, and Southeast Asia.