Prosus may invest ₹1,750 crore in Rapido to boost its stake

India’s ride-hailing market is heating up, and all eyes are on Rapido, the fast-growing startup that has managed to challenge established players like Ola and Uber. According to a Moneycontrol report, global consumer internet group Prosus is in advanced discussions to pump nearly ₹1,750 crore into Rapido. The move is expected to significantly increase Prosus’ ownership in the company, highlighting the investor’s growing confidence in India’s mobility and quick-commerce ecosystem.

This fresh round of talks comes at a time when Rapido is rapidly diversifying its offerings, even stepping into the competitive food delivery space, putting it on a direct collision course with Swiggy and Zomato.

Prosus’ Current Stake in Rapido

Prosus currently holds around a 3–4% stake in Rapido, but the investment giant is now considering expanding its exposure. Over the past year, Prosus has become increasingly bullish on Rapido due to its impressive growth metrics, which have reportedly outpaced Ola and Uber in several categories, particularly in the two-wheeler and three-wheeler ride-hailing segment.

For Prosus, which already has investments in Indian startups like Swiggy, Byju’s, and PayU, Rapido’s performance represents an opportunity to strengthen its foothold in India’s mobility tech sector.

Rapido’s Growth Beyond Ola and Uber

While Ola and Uber remain dominant in India’s cab-hailing industry, Rapido has carved out a niche by focusing on affordable bike and auto rides. This low-cost model has resonated with commuters in tier-1 and tier-2 cities, where cost efficiency often determines user preference.

Recent reports suggest that Rapido’s ride volumes and growth rates have started surpassing Ola and Uber in certain regions, further reinforcing investor confidence. This aggressive expansion has positioned Rapido as one of the most promising mobility-tech startups in India.

Expansion into Food Delivery and Revenue Diversification

One of the most noteworthy developments is Rapido’s entry into the food delivery space, directly competing with Swiggy and Zomato. This strategic move has helped Rapido diversify its revenue streams, reducing its dependence solely on mobility services.

By leveraging its existing fleet of riders, Rapido aims to gain a share of India’s booming food delivery market, which is expected to touch $30 billion by 2029. This diversification makes Rapido more attractive to investors, as it signals long-term scalability and reduced business risk.

Rapido’s Rising Valuation

During the ongoing negotiations, Rapido’s valuation has been pegged at $2.5–$2.7 billion, which is more than double its December 2024 valuation of $1.1 billion. Such a sharp increase within months underlines investor optimism around the company’s growth trajectory.

For Prosus, getting in at this stage could mean securing a larger share of Rapido before its valuation rises even further with subsequent funding rounds.

Swiggy’s Exit Plan from Rapido

Interestingly, Prosus’ potential investment comes at a time when Swiggy is reportedly planning to exit its 12% stake in Rapido. The food delivery giant, which had invested $120 million in Rapido in 2022, is said to be selling its stake for around ₹2,500 crore.

The reason? A potential conflict of interest. With Rapido entering food delivery, Swiggy views its continued investment as a competitive overlap. Exiting now also gives Swiggy a healthy return, more than doubling its initial investment.

What This Means for India’s Startup Ecosystem

Prosus’ deeper involvement in Rapido and Swiggy’s planned exit highlight the shifting dynamics in India’s startup investment landscape. While some investors are consolidating their bets, others are realigning portfolios to avoid conflicts.

For Rapido, the influx of capital will be crucial to expand aggressively against competitors in both ride-hailing and food delivery, sectors that require strong liquidity and operational efficiency.

Conclusion

The next few months could prove decisive for Rapido. If Prosus finalizes its ₹1,750 crore investment, the startup will not only gain significant capital but also global credibility. At the same time, Swiggy’s exit reflects the growing competitive overlap between mobility and delivery businesses in India.

With Rapido’s valuation soaring and competition intensifying, this deal could mark a turning point for India’s ride-hailing industry, setting the stage for the next big battle in mobility and quick commerce.