Uber rival Rapido becomes unicorn after raising $200 million
Rapido, a ride-sharing platform based in Bengaluru, has successfully raised $200 million in its latest Series E funding round. The round was led by WestBridge Capital and valued the company at $1.1 billion, marking Rapido's entry into the prestigious unicorn club. Other participants in this funding round included new investors Think Investments and Invus Opportunities, as well as existing investor Nexus Ventures.
Rapido plans to use funds for expansion and tech enhancement
The newly acquired capital is set to be utilized by Rapido for expanding its operations across India and enhancing its technology platform. The company aims to improve service delivery and extend its reach in various categories such as bike-taxis, three-wheelers, and cabs. Co-founder Aravind Sanka expressed his enthusiasm about the new capital infusion, stating that they are "eager to explore and expand our offerings."
Rapido's journey to becoming a unicorn
Prior to this funding round, Rapido had secured $180 million from Swiggy in April 2022, at a valuation of approximately $830 million. WestBridge Capital has been an investor in Rapido since 2019 and participated in subsequent funding rounds. Sumir Chadha, co-founder and managing partner at WestBridge Capital, praised the team for transforming Rapido into "India's leading low-cost mobility platform" over the past five years.
Rapido's evolution and financial performance
Rapido was established in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR as a bike taxi aggregator. The company later diversified into three-wheeler rides and four-wheeler ride-sharing in October last year to take on Ola and Uber. Despite tripling its operating revenue to ₹443 crore in FY23, Rapido's losses also increased to ₹675 crore from ₹439 crore in FY22. The firm has yet to release its audited results for FY24.
