Rapido Backer Advantedge Secures 30X Returns on Partial Stake Sale

Venture capital firm Advantedge Capital has recorded a 30X return on its investment in Rapido after a partial stake sale, generating $28 million and retaining an estimated $60–65 million stake, as per The Economic Times. The firm originally invested in the ride-hailing startup back in 2016 during its seed round. 

Advantedge Gains $28 Million from Partial Rapido Exit 

Advantedge Capital has achieved a significant liquidity event through a partial exit from Bengaluru-based Rapido, India's largest bike taxi and urban mobility platform. From an initial investment of $2.5–3 million, this strategic sale generated $28 million.  

The transaction was part of Rapido’s ongoing $550 million funding round led by Prosus and WestBridge Capital. This exit, along with the remaining investment, equates to a 30X return on capital. 

Overall Performance of Advantedge Capital’s First Fund 

The first fund by Advantedge, which started deploying in 2015 with a corpus of $10–11 million, has already returned $30 million to its limited partners. This represents a 3X distribution-to-paid-in capital (DPI) ratio.  

The fund’s performance is also reflected in an internal rate of return (IRR) of 67% from the Rapido investment alone, with the multiple on invested capital hitting 111X just from this stake. 

Read More: Rapido’s Ownly Partners with magicpin to Expand Food Delivery Across India! 

Portfolio Highlights and Exits from First Fund 

Besides Rapido, Advantedge registered exits from other notable investments, including Wigzo, acquired by Shiprocket in 2022 for $25 million, and iimjobs.com, bought by Info Edge in 2019 for $12 million.  

These exits have boosted the overall fund performance, adding to investor confidence and enabling the firm to expand its footprint. 

Future Plans and New Fundraising 

Advantedge is in the process of raising its third fund, targeting a corpus of $60 million. The second fund, worth $30 million, has already been fully deployed. Existing portfolio companies include Park+ and Exponent Energy.  

The third fund aims to invest early-stage capital ranging between $0.5–1.5 million per startup, specifically focusing on top performers identified in earlier rounds. 

Conclusion 

Advantedge’s strategic early investment and timely partial exit from Rapido have yielded significant returns, reinforcing the firm's position in the mobility startup space. The successful exits reflect strong performance from its first fund and build a solid foundation for future investments. 

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