Rapido delivers 111X return on AdvantEdge’s initial investment

Rapido has become the largest contributor to AdvantEdge Founders Fund I, which reported an 11.5x MOIC (multiple on invested capital) and over 3x DPI (distribution to paid-in capital). 

A recent partial exit from Rapido delivered a 67% IRR (internal rate of return) and a 111x return on the investment first made in 2016, AdvantEdge said in a press release.

An ET report added that this includes a $28 million partial exit from Rapido, against an initial investment of about $2.5 to $3 million in the Bengaluru based startup.

The development follows recent secondary transactions in Rapido. In September, Swiggy exited its 12% stake for about Rs 2,400 crore, while TVS Motor also sold its stake earlier this month for around Rs 288 crore. The exit ended TVS Motor and Swiggy’s association with Rapido that began in 2022.

According to AdvantEdge, the outcome from Rapido supports its focus on mobility companies that address basic market requirements. In shared mobility, its investments include Rapido, Chalo and Zingbus. In the auto aftermarket, it has invested in Park Plus and TyrePlex. In the EV and energy segment, its portfolio includes Exponent Energy, Baaz, Moonrider, Zeno, Astranova and Pulse Energy.

Following the performance of Fund I and Fund II, AdvantEdge is now raising Fund III. The new fund will focus on opportunities linked to the transition from internal combustion vehicles to electric vehicles, including battery systems, charging networks, energy infrastructure, and new vehicle platforms. 

The fund said that its existing LPs, including Motherson Group and Hero Group, have committed to re-ups, along with interest from new domestic and global investors.