AdvantEdge's Partial Rapido Exit Delivers 11.5x Fund I Return

Rapido has emerged as the largest contributor to AdvantEdge Founders Fund I, which has delivered strong returns for its investors. The fund reported an 11.5 times multiple on invested capital and more than three times distribution to paid in capital.

AdvantEdge said in a press release that a recent partial exit from Rapido generated a 67 percent internal rate of return (IRR) and a 111 times return on the investment first made in 2016.

The update comes after a series of secondary transactions involving Rapido. In September, Swiggy sold its 12 percent stake for about INR 2,400 crore. Earlier this month, TVS Motor also exited its holding for around INR 288 crore. The two companies had invested in Rapido in 2022, and their exit marks the end of that association.

AdvantEdge said the strong results from Rapido highlight its strategy of backing mobility companies that solve essential market needs. Its shared mobility investments include Rapido, Chalo and Zingbus. In the auto aftermarket segment, the fund has invested in Park Plus and TyrePlex. Its EV and energy portfolio features Exponent Energy, Baaz, Moonrider, Zeno, Astranova and Pulse Energy.

After the performance of Fund I and Fund II, AdvantEdge is now raising Fund III. The new fund will focus on opportunities related to the shift from internal combustion vehicles to electric mobility. This includes battery technologies, charging networks, energy infrastructure and emerging vehicle platforms. The fund said existing limited partners such as Motherson Group and Hero Group have committed to participate again, alongside new domestic and international investors.