Ride-sharing platform Rapido turns unicorn; raises $200 million

Ride-sharing platform Rapido has announced a successful Series E funding round, raising $200 million led by WestBridge Capital, with a valuation reaching $1.1 billion. This marks Rapido's entry into the exclusive unicorn club, representing startups valued at $1 billion (approximately Rs 8,400 crore) or more. The funding round attracted new investors, including Think Investments and Invus Opportunities, alongside existing investor Nexus Ventures.

The newly acquired capital will be used to expand Rapido’s operations throughout India and to enhance its technology platform for improved service delivery. The company plans to grow its operations across various categories, including bike taxis, three-wheelers, and taxicabs.

 “With this new infusion of capital, we are eager to explore and expand our offerings. Over the past year, we've experienced significant growth, with our daily rides surging to 25 lakh,” Aravind Sanka, co-founder of Rapido, said in a statement.

What is Rapido?

Founded in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR, Rapido was initially launched as a bike taxi aggregator. In October of the previous year, the company expanded its services to include three-wheeler rides and four-wheeler ride-sharing.

The company has extended its presence beyond metropolitan areas and now claims to be operating in over 100 cities. Despite tripling its operating revenue to Rs 443 crore in FY23, the company's losses increased to Rs 675 crore from Rs 439 crore in FY22. The audited results for FY24 have not yet been filed.

Leading low-cost mobility platform

"In the five years since the initial investment made in Rapido, we've seen the team transform it into India's leading low-cost mobility platform,” Sumir Chadha, co-founder and managing partner at WestBridge Capital added in the statement. 

From leading the bike taxi sector to making notable advancements into 3W autos and cabs, their growth reflects their operational excellence and unwavering commitment to customer and captain satisfaction, the statement further added.

Rapido last raised $180 million in a funding round led by Swiggy at a valuation of around $830 million in April 2022. WestBridge had invested in Rapido, operated by Roppen Transportation Services Pvt Ltd, as early as 2019 and has participated in rounds in 2021 and 2022.