AdvantEdge founders partially exit Rapido, earn 11.5x return on Fund I

AdvantEdge—one of the early backers of Rapido—has partially exited the ride-hailing company. This comes as the investment firm looks to raise its third fund to back companies that accelerate the transition from internal combustion engine to electric vehicles.

The firm’s partial exit from Rapido delivered a 67% internal rate of return (IRR) for its Fund I, through which AdvantEdge has distributed 3x of its paid-in capital to its limited partners. The metric measures the actual cash returned to investors relative to the capital they have contributed to the fund.

IRR, meanwhile, measures how fast an investment grows annually. In Rapido's case, the venture capital firm's investment in the company grew 67% every year from the time the fund invested until the time it sold those shares.

“The extraordinary performance of Fund I validates our conviction in India’s complex, high-potential mobility markets. We continue to see significant unrealised potential across our portfolio as India embarks on its decisive journey toward electrification and advanced infrastructure. Our team’s resilience, particularly navigating the volatility of Fund I through the pandemic, has positioned us perfectly for the next decade,” said Kunal Khattar, Founding Managing Partner at AdvantEdge Founders, in a statement.

Additionally, AdvantEdge has confirmed commitments for its third fund from all its existing limited partners, including industrial families Motherson and the Hero Group, and has seen strong engagement from new domestic and international investors.

The VC firm has also invested in deeptech and battery technology startup Exponent Energy, share mobility platforms Chalo and Zingbus, as well as electric tractor manufacturer Moonrider, among others.