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Homotypic or entotic cell-in-cell invasion is an integrin-independent process observed in carcinoma cells exposed during conditions of low adhesion such as in exudates of malignant disease. Although active cell-in-cell invasion depends on RhoA and actin, the precise mechanism as well as the underlying actin structures and assembly factors driving the process are unknown. Furthermore, whether specific cell surface receptors trigger entotic invasion in a signal-dependent fashion has not been investigated. In this study, we identify the G-protein-coupled LPA receptor 2 (LPAR2) as a signal transducer specifically required for the actively invading cell during entosis. We find that G12/13 and PDZ-RhoGEF are required for entotic invasion, which is driven by blebbing and a uropod-like actin structure at the rear of the invading cell. Finally, we provide evidence for an involvement of the RhoA-regulated formin Dia1 for entosis downstream of LPAR2. Thus, we delineate a signaling process that regulates actin dynamics during cell-in-cell invasion. DOI: http://dx.doi.org/10.7554/eLife.02786.001, eLife digest Entosis is the invasion of one cell by another and can be observed in aggressive cancers. Although the invading cell is usually killed, the surviving cell is sometimes left with the wrong number of chromosomes. This suggests that entosis may help cancer to progress because cells with an abnormal number of chromosomes are common in cancers. For entosis to occur, the invading cell must be released from the tissue that surrounds it, so it can move towards and attach to the cell it is about to invade. Very little is currently known about the cellular and molecular events that enable these processes to occur. Purvanov et al. studied entosis in cells grown in the laboratory and observed that invading cells produce bulges and projections at their rear end for invasion. These projections contain a protein called mDia1. This protein is involved in controlling the growth of the cytoskeleton—the structure that helps cells to both maintain their shape and to move. Adding the signaling molecule lysophosphatidic acid, which is present in human serum, increased the likelihood that cells would invade others. From this, Purvanov et al. established the identities of the proteins involved in transmitting the lysophosphatidic acid signal that controls mDia1 activity during entosis. Changes to this signaling pathway have been associated with cancer and how it spreads between different organs and its involvement in entosis lends further support to the notion that there may be a link between cell-in-cell invasion and the advancement of cancer. DOI: http://dx.doi.org/10.7554/eLife.02786.002