Advantedge’s $2.5M bet on Rapido yields a staggering 111X return

Advantedge, a venture firm focused on mobility startups, has achieved a major return on its early bet on Rapido. The company recently sold part of its stake in the bike-taxi platform for $28 million, delivering massive gains. This exit follows years of steady growth in Rapido’s valuation and investor interest.

Advantedge first backed Rapido in 2016 with an investment of around $2.5–3 million during the startup’s seed round. That early bet has now paid off handsomely, with the firm recording a 111X return on its initial check. The recent partial exit alone generated $28 million, pushing the total value of Advantedge’s remaining shares in Rapido to between $60–65 million.

The sale has significantly boosted the performance of Fund I, which launched in 2015 with $10–11 million. To date, the fund has returned nearly $30 million to its limited partners, achieving an 11.5X multiple on invested capital (MOIC) and a 3X distribution to paid-in capital (DPI). Its internal rate of return (IRR) now stands at 67%, driven largely by the Rapido deal.

Other investors have also been active in Rapido’s secondary market. Swiggy and TVS Motor recently sold portions of their holdings, reflecting growing liquidity in the company. Advantedge’s success extends beyond Rapido, with earlier exits from Wigzo and iimjobs.com further proving its investment strategy.

The firm is now raising its third fund, targeting $60 million after closing its second fund at $30 million in 2020. Backers include prominent family offices, such as those linked to Motherson and the Hero Group.

Advantedge’s partial exit from Rapido has cemented its reputation for high returns in mobility-focused ventures. The $28 million sale, combined with its remaining stake, has delivered nearly $30 million back to investors. With Fund III in progress, the firm continues to build on its track record of profitable exits and strategic investments.