Dutch Giant Prosus Targets Bigger Rapido Ownership with $200M Funding

Dutch investment giant Prosus is making headlines with plans to significantly expand its presence in India’s mobility sector giant, Rapido. As per Moneycontrol, the Prosus investment in Rapido could reach $200 million as the company seeks to capitalize on the growing demand for bike taxi services across the country.

A person associated with the discussions cited, “The $200 million deal could either be in the form of primary capital or via secondary deals where Prosus picks up shares from another investor. It is also possible the total round size if Prosus looks at doing a combination of primary and secondary deals.”

Prosus Increases Stake in Rapido

The increase in Prosus’ stake in Rapido reflects the investor’s confidence in the bike taxi market’s long-term prospects. Prosus currently owns about 3-4 percent of Rapido. In recent months, the investor has become more bullish on the startup as its growth surpasses Uber and Ola. Rapido’s push into new revenue streams, including food delivery, has further encouraged Prosus to negotiate fresh deals to increase its stake in the company.

The investment would help Rapido expand its operations to more cities and improve its technology platform. The company has been focusing on areas where traditional ride-hailing services struggle to provide cost-effective solutions. Earlier this month, Rapido launched ‘Ownly’, a food delivery platform in Bengaluru with a low commission model to compete with giants like Zomato and Swiggy.

Prosus believes that Rapido’s focus on two-wheeler transportation aligns perfectly with Indian urban mobility trends. Many Indian cities have traffic conditions that make bikes and scooters more practical than cars for short-distance travel.

Rapido Valuation Doubles with New Funding Round

Market analysts expect that Rapido’s valuation will double following this significant investment from Prosus. According to sources, Rapido is at a valuation of approximately $2.5-2.7 billion in ongoing negotiations, which is almost 2 times more than its valuation of $1.1 billion only eight months prior in December 2024.

The higher valuation would place Rapido among the top-tier mobility startups in India. This recognition could attract additional investors and partners who want to participate in the growing two-wheeler transportation market.

Rapido has demonstrated consistent growth in user numbers and trip volumes across its operational cities. The platform serves millions of rides monthly, with particularly strong performance in smaller cities where other mobility options are limited.

The company’s revenue model, which includes both ride commissions and delivery services, has proven resilient during various economic conditions. This diversification makes it an attractive investment opportunity for long-term focused investors like Prosus.

Prosus Primary or Secondary Stake in Rapido Structure

The deal structure regarding Prosus’ primary or secondary stake in Rapido remains under discussion between the parties. Prosus may choose to invest directly in the company for new shares or purchase existing shares from current investors.

The final structure will likely depend on Rapido’s immediate capital needs and the preferences of existing shareholders regarding their continued involvement in the company.

There are discussions about Swiggy’s stake exit in Rapido as part of this funding round. Swiggy has held an investment in Rapido, but may be looking to focus resources on its core business areas. Swiggy CEO said that Rapido will face tough challenges in food delivery due to the complexities of building a tech stack and an extensive delivery and restaurant network.

A Swiggy exit would make room for Prosus to acquire a larger stake without significantly diluting other shareholders. This type of investor rotation is common in mature startups preparing for eventual public offerings.