The funding round was led existing backer Prosus, with participation from WestBridge Capital, Accel, and other undisclosed investors
The startup said that the funding is part of a larger $730 Mn round, which will be a mix of primary and secondary transactions
Rapido plans to use the capital to expand into new markets, deepen its presence in existing markets, grow its driver network, and invest in technology and hiring
Ride-hailing unicorn Rapido has raised $240 Mn (₹2,302 Cr) in a fresh funding round led by existing backer Prosus, with participation from WestBridge Capital, Accel, and other undisclosed investors.
The startup said that the funding is part of a larger $730 Mn round, which will be a mix of primary and secondary transactions, to be raised at a post-money valuation of $3 Bn.
Rapido plans to use the capital to expand into new markets, deepen its presence in existing markets, grow its driver network, and invest in technology and hiring.
“This investment is about accelerating our ability to unlock both these structurally. We are going deeper into markets where demand exists, but supply remains fragmented, building the density that gives captains reliable, predictable earnings. We will sharpen our focus on strengthening supply, building technologies, and expanding our multi-modal footprint, with far greater speed and intent,” Rapido cofounder Aravind Sanka said.
Notably, in September last year, Swiggy said it would sell its stake in Rapido to the latter’s existing investors Westbridge and Prosus for about ₹2,400 Cr ($270.4 Mn). Following this, TVS Motor signed a share purchase agreement with Accel and Prosus to sell its stake worth ₹287.9 Cr in Rapido.
Following this, the Competition Commission of India (CCI) approved the investment of Prosus’ entity MIH Investments One BV in Rapido in January.
The fundraise comes at a time when Rapido has been expanding its services beyond ride hailing. It has forayed into categories like food delivery, metro ticket bookings, and recently into flight, hotel, bus, and train bookings.
On the financial front, Rapido narrowed its loss by 30.3% to ₹258.4 Cr in FY25 from ₹370.7 Cr in the previous fiscal year. Meanwhile, its top line rose 44.2% to ₹934.4 Cr from ₹648 Cr in FY24
Rapido competes with the likes of Uber, Ola, among others, in India’s ride-hailing market. The funding announcement comes at a time Uber CEO Dara Khosrowshahi is on an India visit. In February, the global ride-hailing company infused nearly ₹3,000 Cr (around $330 Mn) into Uber India.
Earlier this week, Uber also announced plans to set up its first data centre in India, in partnership with Adani Group.
Source: Inc42 - Startups
