Advantedge’s early investment in Rapido has yielded 30x gains through a combination of partial exit proceeds and the value of its remaining shares
Its debut fund has also produced strong overall returns, distributing about $30 million to investors
The firm plans to close out its few remaining positions over the next 12 months while continuing to hold Rapido for the long term
Advantedge Nets 30x Returns on Early Rapido Investment
Advantedge has secured a 30X return on its early bet on Rapido, driven by a partial exit and the sharp rise in value of its remaining shares in the mobility start-up. The seed-stage investor is now wrapping up its first fund, which has delivered strong overall performance through multiple exits and follow-on rounds
Advantedge Nets 30x Returns on Early Rapido Investment
Summary
Advertisement
Mobility-focussed venture investment firm Advantedge has earned 30x returns from its investment in ride-hailing major Rapido.The returns come from a combination of partial exit and the value of the company’s remaining stake. The investment firm backed the Bengaluru-based start-up in its seed stage in 2016.
Overall, Advantedge’s first fund has generated 11.5x returns on its invested capital after multiple portfolio exits and follow-on funding rounds, the firm’s founder Kunal Khattar told The Economic Times. The first fund, which started deploying in 2015, was nearly $10-11 million in size.
The report stated that the firm has returned roughly $30 million to its limited partners, which translated into a 3x distribution-to-paid-in capital (DPI) ratio. The metrics indicate how much capital has been distributed back to investors as compared to their capital commitments.
Advantedge had invested approximately $2.5-3 million in Rapido. Of this, it has made a partial exit worth $2.5-3 million from the ride-hailing start-up. Now, the investment firm continues to hold stake worth $60-65 million in the urban mobility platform. This makes the total returns to 30x the invested capital.
Advertisement
“We are now looking to sell our few remaining positions and fully close the fund over the next 12 months. We will continue to hold stake in Rapido in the foreseeable future,” Khattar told ET.
This came at a time when a Dutch investor Prosus signalled its plan to boost the shareholding in Rapido. Currently, it holds 5% stake in the ride-hailing start-up. On Monday, Prosus CEO Fabricio Bloisi said that Bengaluru-based Rapido “tops the charts” in India’s mobility market.
The investor highlighted Rapido’s rapid growth in its latest presentation, noting that the start-up’s gross merchandise value expanded roughly 111% year-on-year during the April–September 2025 period.
The company framed this acceleration as a core justification for additional capital and a strategic bet on Rapido’s longer-term potential. Rapido’s GMV performance, Prosus said, reinforces its broader India portfolio thesis.
Advertisement
Prosus’s investment plan involves both fresh funding and the acquisition of equity from existing shareholders. The firm previously injected $30 million into Rapido in February 2025 and is understood to be purchasing secondary shares from Swiggy, alongside preparing a sizeable primary cheque that reportedly places the combined investment in the low hundreds of millions of dollars.
The Swiggy stake sale, reported in recent weeks, forms part of a wider reshuffle of ownership within the company as existing stakeholders and new investors reorganize their exposure.
Show comments