SUMMARY
- Rapido has secured $200 million in a funding round led by its existing investor, WestBridge Capital.
- It has entered the exclusive club of unicorns with a valuation of $1.1 billion.
- The funds will be utilized for the expansion of the company’s recently introduced four-wheeler taxi service.
Rapido has recently secured $200 million (Rs 1,660 crore) in a funding round led by its existing investor, WestBridge Capital. This infusion of capital has taken the ride-hailing startup into the exclusive club of unicorns with a valuation of $1.1 billion.
According to an ET report, the funding round also attracted participation from its existing backers, Nexus Venture Partners, in addition to new investors Think Investments and Invus Opportunities.
CEO of Rapido, Aravind Sanka, has disclosed that the funds will be utilized for the expansion of the company’s recently introduced four-wheeler taxi service, with the objective of competing against established players such as Ola and Uber.
“The latest fundraise comes on the back of strong growth we have clocked over the last two years,” Sanka remarked.
In July, Rapido had secured $120 million (around Rs 1,000 crore) from WestBridge Capital.
Currently, Rapido is experiencing daily orders of 2.3 to 2.5 million across various vehicle types, with 7% of these orders being business-to-business (B2B). Within the B2B segment, the company is fulfilling food delivery orders for Swiggy during off-peak hours for its bike taxi services and has also partnered with the Open Network for Digital Commerce (ONDC) to serve as a logistics provider, as Sanka has mentioned.
Established in 2015 by founders Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido primarily operates in the sectors of bike taxi and auto transportation. In December 2023, the company expanded its services to include cab services in several cities and introduced peer-to-peer delivery services through Rapido Local.
Rapido’s net loss increased by over 50% to Rs 674.5 crore in FY23 compared to Rs 439 crore in FY22. Operating revenue had also seen a significant increase, rising to Rs 443 crore from Rs 144.8 crore in the same period.
Earlier in August, Rapido had achieved a gross merchandise value (GMV) of $1 billion attributed to its foray into new markets such as four-wheeler cabs and auto-rickshaws, as well as its broad expansion into over 100 cities.
Sanka disclosed that three-wheeler auto-rickshaw bookings represent the leading source of GMV, accounting for 40% of the total, with bike-taxis and cabs sharing the remaining 30% each. He noted that more than half of the rides are generated by two-wheeler vehicles.
