Ride-hailing firm Rapido delivers 111x return on AdvantEdge’s initial investment

Advantedge, a mobility-focused venture investment firm, has recorded one of its strongest returns to date after a partial exit from Rapido, India’s largest ride-hailing platform.

The exit, combined with the value of its remaining holding, has delivered nearly 30X returns on the firm’s initial investment in the Bengaluru startup.

Advantedge first backed Rapido in its seed round in 2016, investing about $2.5-3 million. Founder Kunal Khattar told ET that Fund I, sized at $10–11 million and launched in 2015, has now returned almost $30 million to limited partners, translating to an 11.5X MOIC and over 3X DPI.

The fund’s performance was significantly accelerated by the recent $28 million partial exit from Rapido, while Advantedge continues to hold shares currently valued at $60-65 million. The investment has delivered an IRR of 67% and a 111X return on the initial check.

Khattar said the firm is working to close out Fund I over the next 12 months but will continue to hold Rapido for the foreseeable future. Advantedge has also recorded successful exits in Wigzo, acquired by Shiprocket in a $25 million all-cash deal in 2022, and iimjobs.com, acquired by Info Edge for $12 million in 2019.

The firm’s backers include the family offices of Motherson and the Hero Group. Advantedge closed its second fund at $30 million in 2020 and has since fully deployed the capital into companies including Park+, based in Gurugram, and battery-tech startup Exponent Energy. It is now raising a third fund targeting $60 million, with plans to make $0.5-1.5 million early-stage investments and continue supporting top-performing Fund II portfolio companies.

Rapido has been driving increased secondary deal activity. Swiggy exited its about 12% (11.8%) stake in September for around ₹2,400 crore, while TVS Motor sold its holding earlier this month for ₹288 crore, ending partnerships that began in 2022.