Rapido’s Role in AdvantEdge Founders Fund I

Rapido has positioned itself as the foremost contributor to AdvantEdge Founders Fund I, which has reported an 11.5x MOIC (multiple on invested capital) alongside a noteworthy 3x DPI (distribution to paid-in capital). A recent partial exit from Rapido has yielded a remarkable 67% IRR (internal rate of return) and a return of 111x on the investment originally made in 2016, as highlighted in a press release by AdvantEdge.

A report from ET noted that this achievement includes a $28 million partial exit from Rapido, following an initial investment of approximately $2.5 to $3 million in the Bengaluru-based startup. This event coincides with recent secondary market transactions involving Rapido. In September, Swiggy divested its 12% stake for around Rs 2,400 crore, while TVS Motor sold its stake earlier this month for roughly Rs 288 crore, concluding their association with Rapido that commenced in 2022.

Strategic Focus on Mobility Investments

As per AdvantEdge, the positive outcome from Rapido reinforces the fund’s commitment to investing in mobility companies that cater to essential market needs. The fund’s shared mobility investments include notable companies like Rapido, Chalo, and Zingbus. Additionally, in the automotive aftermarket sector, it has backed Park Plus and TyrePlex. The EV and energy segment of its portfolio comprises Exponent Energy, Baaz, Moonrider, Zeno, Astranova, and Pulse Energy.

Future Endeavours: AdvantEdge Fund III

In light of the successful performance of Fund I and Fund II, AdvantEdge is in the process of raising Fund III. This new fund aims to explore opportunities stemming from the shift from internal combustion vehicles to electric vehicles. Focus areas include battery systems, charging infrastructure, energy networks, and innovative vehicle platforms. The fund reports that its existing limited partners (LPs), such as Motherson Group and Hero Group, have committed to reinvestments, alongside interest from new domestic and global investors.