Rapido-backer Advantedge nets 11x returns on its partial exit from firm

Mobility-focused VC firm AdvantEdge Founders says it has earned 11X returns from its first fund, mainly due to its partial exit from rapido.

AdvantEdge partner Kunal Khattar said, “We have exited about $28 Mn [from Rapido] from our initial investment of close to $3 Mn. We still hold about $60 Mn of unrealised gains in our stake in Rapido.”

In a statement, the VC firm said its first fund delivered a 11.5X return on the money invested and has already returned more than 3X of the capital to its investors. Its investment in Rapido alone generated a 67% IRR and a huge 111X return on the original amount invested.

AdvantEdge partner Kunal Khattar said that the fund first invested ₹2.2 crore in Rapido. After that, it added another ₹2 crore, eventually putting in a total of $2.5–$3 million in the ride-hailing startup.

“After the partial investment exit, we were able to mark up Rapido’s valuation because they raised the primary round at almost $300 Mn from WestBridge and Prosus… On the basis of that share price, we did around a $28 Mn secondary deal,” added Khattar.

ADV Fund I, launched in 2015 with a target of about $11 million, focused on seed and early-stage investments. The VC firm typically invested ₹1–3 crore per company, with follow-on rounds of up to ₹25 crore.

The fund supported 19 companies in mobility, logistics, auto e-commerce and electric vehicles, including Chalo, Baaz, Zingbus and Shuttl. Khattar noted that the fund’s second-largest investment was the bus technology platform Chalo, valued at $400–500 million in 2023.

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Khattar added that the fund’s second-largest investment was the bus technology platform Chalo, valued at $400–500 million in 2023.

The VC firm is now raising its third fund which expected to include both existing and new investors. Launched in 2023, AdvantEdge’s third fund has a target of $80–100 million to support emerging electric vehicle companies.

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