Rapido to Raise $60 Million from Prosus as Part of $200 Million Series E Funding

Mobility unicorn Rapido is set to raise $60 million in a combination of primary and secondary capital from Prosus, according to sources familiar with the deal. This funding round is part of Rapido’s ongoing $200 million Series E round, which previously saw WestBridge Capital leading the initial tranche of $120 million in August 2023.

“Prosus will acquire a $60 million stake in Rapido. The terms of the deal have been finalized, enabling partial exits for some of the company’s early backers,” stated one source, who requested anonymity. Another source confirmed that with Prosus’s investment, Rapido will successfully close its Series E funding round.

Despite the fresh influx of capital, sources indicate that Rapido’s valuation will remain unchanged at approximately $1.02 billion. This valuation was established during the first tranche of the Series E round, funded by WestBridge through entities like SETU AIF and Konark. Queries sent to both Rapido and Prosus have not yet received responses.

Prosus, which already holds the largest stake in food delivery giant Swiggy, appears to be expanding its interest in the mobility space. In November 2022, Swiggy acquired over a 12% stake in Rapido after leading its $180 million funding round, signaling Prosus’s continued confidence in the ride-hailing firm.

This deal comes at a time when Rapido has reportedly surpassed Ola and Uber to become the largest player in India’s ride-hailing sector, which includes bikes, autos, and cabs, according to internal documents reviewed by Entrackr.

Although Rapido has not yet disclosed its financial performance for FY24, the firm’s operating revenue tripled to ₹443 crore in FY23. However, this rapid growth has also led to increased operational challenges, with losses rising by 54% to ₹675 crore in the same fiscal year.