Competition Commission of India Approves Prosus' Additional Stake Acquisition in Rapido

The Competition Commission of India (CCI) has approved a proposal from Dutch investment firm Prosus to increase its stake in Rapido, a ride-hailing company. Prosus NV is acquiring more equity in Roppen Transportation Services Pvt Ltd, which operates Rapido, through its subsidiary MIH Investments One BV. The CCI's approval was announced on X, confirming the acquisition of additional shares in Roppen Transportation Services.

Representative image

Roppen Transportation Services provides technology-based solutions for on-demand transport and taxi services using bikes, three-wheelers, and cars. Their main offering is an app-enabled radio taxi service that allows users to book rides via the Rapido mobile app. Regulatory approval is necessary for deals exceeding certain thresholds to ensure fair competition and prevent unfair business practices.

Prosus and Rapido's Strategic Moves

In November last year, TVS Motor Company revealed plans to sell its stake in Rapido to Prosus and Accel India for Rs 287.93 crore. This move aligns with Rapido's growth strategy as it aims to expand its market presence. The company anticipates maintaining a 100% annual growth rate over the next few years, according to co-founder Aravind Sanka.

Rapido is also preparing for a public listing by the end of 2025. The company aims to become a significant player in the ride-hailing sector before launching its initial public offering (IPO). This strategic planning reflects Rapido's ambition to strengthen its position against competitors.

Swiggy's Stake Sale

In September 2025, Swiggy sold its approximately 12% stake in Rapido for around Rs 2,400 crore or USD 270 million. The decision was driven by a potential conflict of interest as Rapido planned to enter the food delivery market. This sale highlights the dynamic nature of investments and strategic decisions within the industry.

The CCI plays a crucial role in overseeing acquisitions like Prosus' increased investment in Rapido. By ensuring compliance with regulatory standards, the CCI promotes healthy competition and prevents monopolistic practices. As Rapido continues its growth journey, these developments mark significant milestones in its expansion strategy.

With inputs from PTI