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Prosus in Talks to Acquire 5% Stake in Rapido at $1 Billion Valuation

IndyaStory April 23, 2025

Prosus in Talks to Acquire 5% Stake in Rapido at $1 Billion Valuation


Global tech investor Prosus is reportedly in advanced discussions to acquire a 5% stake in Rapido, India’s fast-rising ride-hailing platform. The potential deal, pegged at around $50 million, is expected to be a secondary transaction, valuing the company at a flat $1 billion, according to sources familiar with the matter.


ndia’s pharmaceutical and healthcare sector kicked off 2025 with deal volumes holding steady from the previous quarter, though overall deal value fell sharply as investors leaned towards smaller, more targeted bets and mid-market consolidation. According to Grant Thornton Bharat’s latest Pharma and Healthcare Dealtracker report for Q1 2025, the sector saw 67 transactions amounting to $2.1 billion. While this marked a minor 3% drop in deal volumes, it represented a steep 70% decline in value from Q4 2024, when a $5 billion mega-merger between Aster DM Healthcare and Quality Care India had buoyed figures. Still, industry watchers say the dip is more recalibration than retreat. “Investor appetite is intact. We’re seeing more nuanced, strategic capital deployment in scalable platforms and regulated markets,” said Bhanu Prakash Kalmath, Partner and Healthcare Services Industry Leader at Grant Thornton Bharat. Shifting priorities According to the report, private equity activity remained resilient with 42 deals worth $562 million, just shy of last quarter’s $603 million. However, the absence of billion-dollar plays continues to drag down total values. The PE trendline now favors early-stage bets in asset-light, tech-enabled models across diagnostics, wellness, and chronic care. Healthtech emerged as the most active segment by volume, accounting for over a quarter of all deals. These investments largely backed preventive care and consumer-centric delivery models—such as AI-driven diagnostics and fertility testing—underlining a shift towards decentralised healthcare. In contrast, the pharma and biotech segment commanded the lion’s share of deal value, raking in $1 billion across 17 deals. Three large transactions in the space—including Intas Pharmaceuticals’ $558 million acquisition of Coherus Biosciences’ Udenyca—highlight India’s growing push into global biologics and complex generics. Consolidation themes Mergers and acquisitions held steady at 25 deals totaling $1.5 billion. Though outbound transactions led value creation—comprising over 85% of the M&A haul—domestic activity also remained strong, especially in hospital consolidation, the report noted. Sun Pharma’s $355 million buyout of U.S.-based Checkpoint Therapeutics and Zydus Lifesciences’ near-total acquisition of France’s Amplitude Surgical point to a broader strategic alignment: tapping overseas R&D pipelines and specialty segments like oncology and orthopedics. Notably, diagnostics and hospital platforms continued to draw investor interest. Kotak Alternate Asset Managers pumped $111 million into Neuberg Diagnostics, among the top five private equity deals this quarter. IPOs signal institutional optimism Three healthcare IPOs, raising a total of $503 million, hit the markets this quarter, along with a $74 million qualified institutional placement by a hospital chain. The listings—spanning hospitals, devices, and pharma—signal continued institutional optimism for asset-backed healthcare delivery models. Still, macroeconomic headwinds could test investor sentiment in the months ahead. The report cautioned that possible tariff measures from the U.S. and a strong dollar could tighten liquidity for outbound expansions. Read more at: https://yourstory.com/2025/04/smaller-cheques-sharper-bets-healthcare-deals-hold-steady-q1-2025


The transaction would see some of Rapido’s early investors, including AdvantEdge and a few angel backers, partially exiting. While details are still being finalized, Prosus is said to have initiated due diligence as part of the investment process. Both Prosus and Rapido declined to comment on the developments.

“Rapido’s success in disrupting the long-standing Ola-Uber duopoly has drawn investor interest. It has positioned itself as a strong contender in the Indian mobility landscape, which aligns well with Prosus’ investment strategy,” said a source with direct knowledge of the matter.

The timing of this deal is significant. Rapido recently surpassed Ola to become the second-largest ride-hailing service in India, trailing only Uber. In a recent interview, Aravind Sanka, Co-founder and CEO of Rapido, revealed the platform now handles 2.5 million rides daily and is on track to become cash flow positive by the December quarter. The company has already halved its FY24 losses and doubled its gross merchandise value (GMV) year-over-year.

Back in September, Rapido raised $200 million from investors including WestBridge Capital and Nexus Venture Partners, reaching unicorn status. The company has so far raised over $500 million and plans to use the fresh capital to expand nationwide, enhance its tech platform, and diversify its service offerings across bike taxis, autos, and cabs.

Founded in 2015 as a bike-taxi platform, Rapido has evolved into a full-scale urban mobility provider. This evolution, coupled with its robust growth metrics, makes it an appealing prospect for long-term investors.

For Prosus, the move is part of a broader strategy to back high-growth Indian startups with IPO potential. The investor, which has deployed over $2.5 billion in India, is recalibrating its focus following notable setbacks in BYJU'S and Pharmeasy. Notably, Prosus is also a major shareholder in Swiggy, which is eyeing a $12–15 billion IPO. The firm is set to reduce its Swiggy stake from over 30% to 24.9% to avoid being classified as a promoter.

Beyond mobility and food delivery, Prosus continues to diversify its Indian portfolio, with recent investments in Vastu Housing Finance ($100 million) and Bluestone ($40 million).

If finalized, the Rapido investment would reaffirm Prosus’ commitment to backing category-leading tech companies that are shaping India’s digital economy.

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