Whalesbook
Regulatory Approval
The Competition Commission of India (CCI) has granted its approval for Prosus's entity MIH Investments One BV to acquire a stake in the prominent ride-hailing unicorn, Rapido. This regulatory green light comes months after the global venture capital firm was reportedly exploring further investment in the Indian startup.
Transaction Details
The approval clears a significant step for Prosus's deepening involvement with Rapido. The move follows major secondary transactions late last year. In September, Rapido investor Swiggy divested its entire stake for approximately INR 2,400 crore, with Prosus acquiring shares valued at around INR 1,968 crore. Separately, in November, TVS Motor Company sold its stake, with Prosus securing shares worth INR 145 crore out of a INR 287.9 crore deal.
It remains unclear if the CCI's current endorsement specifically pertains to these secondary share purchases or if it also encompasses Prosus's exploration of injecting fresh equity into Rapido. Reports from August last year indicated that Prosus was considering a $200 million investment at a valuation between $2.5 billion and $2.7 billion, a plan that Rapido's board had previously approved.
Strategic Rationale
Prosus has demonstrably increased its commitment to Rapido, with CEO Fabricio Bloisi identifying the company as a leader in India's competitive mobility market, surpassing established players like Ola and Uber. Prosus, a major technology investor, is strategically banking on its portfolio companies, including Rapido, for substantial profits through future initial public offerings (IPOs). The firm has recently seen success from IPOs of Urban Company, Meesho, and Bluestone.