Exclusive: Rapido To Raise INR 250 Cr From Prosus

Ride-hailing major Rapido is raising INR 250 Cr (about $28.9 Mn) from Prosus, in what seems like its ongoing Series E round.

Prosus is acquiring a 2.9% stake in the startup at the same valuation at which it became a unicorn in July last year by raising $120 Mn (about INR 1,000 Cr) from existing investor WestBridge Capital.

According to Rapido’s regulatory filings, its parent Roppen Transportation Services Pvt Ltd has sought the approval of its shareholders to issue 47,743 Series E compulsorily convertible preference shares (Series E CCPS) to Prosus at an issue price of INR 52,467 per share, along with one equity share at the same price.

The investment will be made through Prosus’ investment vehicle, MIH Investments One B.V.

Inc42 has reached out to Rapido and Prosus for comments on the development. The story will be updated on receiving their responses.

In October last year, Entrackr reported that Prosus was looking to invest $60 Mn in the ride-hailing major via a mix of primary and secondary deals. 

At the time, it was reported that Prosus was eyeing to acquire anywhere between 5-6% in the company. 

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido allows users to book bike taxis and autos. It also launched its cab service in some cities in December 2023. Besides, it also offers peer-to-peer delivery services via Rapido Local. It claims to have so far facilitated over 200 Cr rides in 120 cities and witness 3.6 Mn rides daily.

Last month, the startup announced plans to expand its footprint to 500 cities across the country from 120 currently. 

Earlier today, Rapido also announced its first Employee Stock Ownership Plan (ESOP) liquidation programme for its current and former employees. The startup said the programme would generate 5X growth.

“… With this initiative, we want to recognise and reward the team for their trust and contributions. This programme will offer our former and present employees the opportunity to create wealth and benefit from this initiative,” said Sanka in a statement. 

On the financial front, the unicorn managed to trim its loss by over 45% year-on-year (YoY) to INR 370 Cr in the financial year 2023-24 (FY24) from INR 675 Cr in the previous fiscal year. Operating revenue jumped 1.5X to INR 648.1 Cr in FY24 from INR 443 Cr in the previous year. 

Rapido claimed to have reduced its loss by more than 77% to INR 17 Cr in the second quarter (Q2) of FY25 from INR 74 Cr in the year-ago period.