TVS divests entire Rapido stake for ₹288 cr

TVS has entered into an agreement with Accel and MIH Investments to completely divest from  Roppen Transportation Services, the operator of Rapido for ₹288 crore. 

The deets: under this agreement, TVS will sell:

• shares worth ₹143.96 crore to Accel India VIII (Mauritius)
• shares worth ₹143.97 crore to MIH Investments One BV

TVS Motors had first signed a strategic partnership with Rapido in 2022 to explore collaboration opportunities.

Why it’s happening: with this divestment, TVS wants to monetise its investment from the ride-hailing company. Notably, the announcement also comes at a time when Swiggy is in the process of selling its 12% stake from Rapido to Prosus and WestBridge Capital. 

With these sell-offs and partnerships, Rapido wants to eventually scale its core ride-hailing operations and expand its food-delivery segment Ownly.