Mobility startups, especially in the ride-hailing and electric vehicle (EV) sectors, often operate in a regulatory grey zone, and that’s okay, according to Kunal Khattar, co-founder of AvantEdge, an early investor in Rapido. In a recent interview, Khattar explained that as long as a startup’s operations are not outright illegal, it’s acceptable to work within these ambiguous spaces, particularly in the early stages of product development.
He emphasized that in India, technology and innovation outpace policy-making, meaning entrepreneurs often have to take risks and launch their products without waiting for clear regulatory guidelines. Khattar’s own experience with Rapido, where AvantEdge first invested in 2016, shows how this strategy can pay off. Despite initial regulatory uncertainty around two-wheeler taxis, Rapido succeeded by focusing on technology to change customer behavior rather than waiting for policy frameworks to emerge. Since AvantEdge’s initial investment, Rapido’s valuation has skyrocketed, giving Khattar’s firm a 27.3x return on its investment. Khattar also noted that the transition from internal combustion engine vehicles to electric vehicles presents even more opportunities for disruption, highlighting the fast-paced changes in the mobility sector.
