Rapido Claims Unicorn Tag With $200 Mn Funding From WestBridge, Others

Rapido has raised $200 Mn (INR 1,660 Cr) in a Series E funding round led by existing investor WestBridge Capital that catapulted the ride-hailing startup into the unicorn club with a valuation of $1.1 Bn.

The round also saw participation from existing backer Nexus Venture Partners, along with new investors Think Investments and New York-based Invus Opportunities.

Aravind Sanka, cofounder of Rapido, said in a statement that the proceeds would be deployed to expand the company’s recently launched four-wheeler taxi service.

Additionally, the investment will support the expansion of Rapido’s operations across India and the scaling of its technology platform to improve service delivery.

“The latest fundraise comes on the back of strong growth we have clocked over the last two years,” he added.

In July, Inc42 reported that Rapido secured $120 Mn (approximately INR 1,000 Cr) from existing investor WestBridge Capital. 

Rapido is currently clocking 2.3-2.5 Mn orders daily across different form factors, with 7% coming from business-to-business (B2B) operations. Under B2B, the company fulfils food-delivery orders for Swiggy during lean hours for bike-taxi services and has also onboarded the Open Network for Digital Commerce (ONDC) as a logistics provider, said the cofounder.

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, the startup primarily operates in the bike taxi and auto transportation segments. In December last year, it also launched cab services in some cities. In addition, it also offers peer-to-peer delivery services via Rapido Local. 

On the financial front, Rapido’s net loss widened over 50% to INR 674.5 Cr in the financial year 2022-23 (FY23) from INR 439 Cr in the previous fiscal year. Operating revenue zoomed to INR 443 Cr from INR 144.8 Cr in FY22.