TVS Motor Company has announced that it will sell its stake in Roppen Transportation Services, the parent company of popular bike-taxi and ride-hailing platform ‘Rapido’. This decision marks a strategic shift by TVS as it refocuses its efforts on its core business areas, which is two-wheelers and electric mobility.
The company made the announcement through a regulatory filing, confirming that it has entered into share purchase agreements with Accel India VIII (Mauritius) Limited and MIH Investments One B.V. These are global investment firms with a strong presence in the technology and mobility sectors.
According to TVS Motor, the deal involves the sale of:
- 11,997 Series D Compulsory Convertible Preference Shares (CCPS) to Accel India VIII (Mauritius) Limited for Rs 143.96 crore.
- 10 equity shares and 11,988 Series D CCPS to MIH Investments One B.V. for Rs 143.97 crore.
The total transaction value amounts to around Rs 288 crore and it will be completed after
receiving necessary regulatory approvals.
Why Is TVS Selling Its Stake?
TVS Motor had invested in Rapido as part of its earlier strategy to explore new-age mobility solutions, including ride-sharing and tech-driven transport services. However, with the Indian electric vehicle (EV) market growing rapidly, TVS now wants to reallocate its funds to strengthen its position in the electric mobility and two-wheeler segments, which are the areas where it already gets a strong brand presence.
In easy words, the company is cashing out its investment in Rapido to channel that money into building more advanced electric scooters, motorcycles and sustainable mobility solutions.
However, TVS Motor has also clarified that the buyers Accel and MIH Investments are not related to the company’s promoters, which means the deal is not a related-party transaction. There are no special rights, board nominations or side agreements involved in this. This ensures that the transaction remains straightforward and transparent.
What Happens Next?
The sale agreements will take effect once the required regulatory approvals are obtained. After that, TVS Motor will no longer hold a stake in Rapido. The company has stated that there are no other material disclosures or conflicts of interest related to this deal.
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What It Means for the Industry
For everyday readers, this move shows how traditional automakers like TVS are adapting to new market trends. Instead of spreading investments across many ventures, TVS is now sharpening its focus and betting big on the future of electric mobility.
Meanwhile, for Rapido, this could open new doors. With investors like Accel which is a global venture capital firm that has backed companies like Flipkart and Swiggy and MIH Investments, part of the Prosus group, Rapido may gain fresh funding, stronger tech backing and more growth opportunities in the competitive ride-hailing space.
For more two wheeler, three wheeler and auto industry updates, stay tuned to Times Now Auto.
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