Prosus in talks to invest $200M in Rapido
What's the story
Dutch investment giant Prosus is in talks to invest around $200 million (nearly ₹1,750 crore) in Indian ride-hailing start-up Rapido, according to Moneycontrol. The move comes as part of Prosus's strategy to increase its stake in the rapidly growing company. Currently, Prosus holds a 3-4% stake in Rapido. The proposed deal could be structured as primary capital or secondary deals, where shares are bought from another investor.
Valuation surge
Valuation more than doubled to $2.5-$2.7 billion
Rapido's valuation has more than doubled to $2.5-$2.7 billion in the ongoing negotiations, up from $1.1 billion in December 2024. The company's growth has outpaced that of Uber and Ola, prompting Prosus to explore new deals for increasing its stake. Prosus CEO Fabricio Bloisi has been optimistic about Rapido's potential as a portfolio company, which could explain the investor's interest in doubling down on this bet.
Strategic support
Bloisi on backing companies like Rapido
Bloisi had previously said that companies like Meesho and Rapido are local innovations that have grown into market leaders. He emphasized the need for global players to back such companies with their expertise. "If we just help them with money, we are not doing enough," he said in an interview earlier. This strategic support from Prosus could further accelerate Rapido's growth trajectory in the competitive ride-hailing market.
Market dynamics
Swiggy to sell its entire stake
Meanwhile, food delivery giant Swiggy is selling its entire 12% stake in Rapido as the latter enters the food delivery space. The move could lead to a potential conflict of interest for Swiggy. Despite this, the value of Swiggy's holdings and overall Rapido valuation has increased due to business growth. Rapido's Gross Merchandise Value (GMV) has crossed $2 billion, doubling in a year and making it a top player in the market.