Rapido is preparing for an IPO, but growth is its top priority.
Taxi service provider Rapido has begun preparations for an initial public offering (IPO). Company co-founder Arvind Sanka revealed this. However, the company wants to achieve a larger target before entering the stock market.
Company’s focus on growth
According to Arvind Sanka, Rapido’s primary goal is to become larger than its closest competitor. The company is currently focused on further strengthening its lead. Sanka said, “We want to grow further before thinking about the stock market.”
The company’s performance has been excellent. Sanka said, “Our growth rate has been 100 percent in the last two years. We want to continue this growth rate for at least a few more years and then consider the market.”
What is the IPO timeline?
When Sanka was asked if Rapido was considering an IPO after two years, he said the timeline changes every quarter depending on the company’s performance. However, he clarified that the company wants to be fully prepared for it.
He said, “We are taking steps in this direction, both in terms of preparation, commercially, and in all the required aspects.” It is expected that the company can begin work on a public listing by the end of next year.
TVS Motor to Sell Its Stake in Rapido
Meanwhile, another big news related to Rapido has emerged. TVS Motor Company has reached an agreement to sell its stake in Rapido for ₹287.93 crore.
This share purchase agreement has been signed with Excel India 8 (Mauritius) Limited and MMIH Investments One BV. Under this deal, TVS Motor will sell its investment stake in Roppen Transportation Services Private Limited, Rapido’s parent company.
Let us tell you that TVS Motor had entered into a strategic partnership with Rapido in 2022, with the aim of working together in the field of demand-supply and commercial transportation.
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Source: Livehindustan