TVS Motor Exits Rapido with ₹288 Crore Stake Sale

Two-wheeler major TVS Motor has signed separate share purchase agreements to sell its entire stake in ride-hailing startup rapido (Roppen Transportation Services Pvt. Ltd.) to Accel India VIII (Mauritius) Limited and MIH Investments One BV for a total of ₹287.93 crore.

In a stock exchange filing on November 6, TVS Motor said the sale is part of its plan to monetise its investment in Rapido.

Under the agreements, TVS Motor will sell 11,997 Series D compulsory convertible preference shares (CCPS) to Accel India VIII (Mauritius) for ₹143.96 crore, and 10 equity shares along with 11,988 Series D CCPS to MIH Investments One B.V. for ₹143.97 crore. The completion of the deal is subject to necessary regulatory approvals from the respective buyers.

According to the company’s disclosure, the deal crosses the materiality threshold set under Regulation 30(4) of SEBI’s Listing Obligations and Disclosure Requirements, which required the company to make the announcement.

The buyers — Accel and MIH Investments One B.V. — are not related to TVS Motor’s promoter group, and the deal was carried out on an arm’s-length basis.

This development follows reports that Accel, a leading venture capital firm and an existing investor in Swiggy, has been in talks to invest in Rapido alongside Prosus, which also backs both Swiggy and Rapido.

Earlier, Swiggy had planned to sell shares worth about ₹2,400 crore in Rapido due to overlapping interests in their food delivery businesses. Prosus later increased its stake in Rapido, and Accel’s entry now adds another major institutional investor to the Bengaluru-based mobility platform’s cap table.

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