Rapido Enters Unicorn Club By Raising $120 Mn From WestBridge Capital

Ride-hailing startup Rapido has bagged a funding of $120 Mn (about INR 1,000 Cr) from existing investor WestBridge Capital at a post-money valuation of a little over $1 Bn.

The investor poured in the fresh capital by participating in Rapido’s Series E funding round through three of its related entities – Setu AIF Trust, Konark Trust, and MMPL Trust, as per regulatory filings.

Rapido’s parent entity Roppen Transportation Services Pvt Ltd allotted 95,479  Series E compulsorily convertible preference shares (CCPS) and 95,489 Series E1 CCPS to the three WestBridge Capital entities on July 18. This cumulatively translates to INR 1,002.00 Cr.

Of this, the startup has received about INR 500 Cr, while the remaining amount will be received when called upon. 

With this, the startup has become the third unicorn of 2024 and 116th Indian unicorn. Krutrim AI and Perfios are the two other startups which entered the unicorn club earlier this year. 

Meanwhile, ET reported that Rapido is in talks with investors to raise another $20 Mn. “A US-based family office and a UK-based fund are in talks to pick up stakes in the company,” a person aware of the matter was quoted as saying. 

Inc42 has reached out to Rapido for a comment on the development. The story will be updated on receiving a response. 

Rapido counts the likes of Swiggy, TVS Motors, Nexus Ventures, and Shell Ventures among its investors. The bike taxi startup last raised $180 Mn in a funding round led by Swiggy in participation from TVS Motors, WestBridge Capital, Nexus Ventures, and Shell Ventures back in April 2022. 

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 more than 50% to INR 674.5 Cr in the financial year 2022-23 (FY23) from INR 439 Cr loss in the previous fiscal year. Operating revenue shot up 3.05X to INR 443 Cr from INR 144.8 Cr in FY22.

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