TVS Motor to sell stake in Rapido for Rs 288 Cr
TVS Motor has entered into separate share purchase agreements to divest its entire stake in ride-hailing startup Rapido to Accel India VIII (Mauritius) Ltd and MIH Investments One BV
Two-wheeler major TVS Motor has entered into separate share purchase agreements to divest 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 consideration of Rs 287.93 crore.
In a stock exchange filing on November 6, TVS Motor said the move is part of the company’s 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 Rs 143.96 crore, and 10 equity shares along with 11,988 Series D CCPS to MIH Investments One B.V. for Rs 143.97 crore. The completion of the transaction is subject to necessary regulatory approvals from the respective buyers.
According to the company’s disclosure, the transaction exceeds the materiality threshold under Regulation 30(4) of SEBI’s Listing Obligations and Disclosure Requirements, prompting the announcement.
The buyers—Accel and MIH Investments One BV—are not related to TVS Motor’s promoter group, and the deal has been executed on an arm’s-length basis.
This development comes after reports that Accel, a marquee venture capital firm and existing backer of Swiggy, has been in talks to invest in Rapido, alongside Prosus, an investor in Swiggy and Rapido.
Notably, Swiggy had earlier sought to divest shares worth about Rs 2,400 crore in Rapido amid a potential overlap in their food delivery businesses. Prosus subsequently increased its holding in Rapido, and Accel’s entry now marks another key institutional investor joining the Bengaluru-based mobility platform’s cap table.
Edited by Swetha Kannan