Rapido Eyes $100 Mn Funding From WestBridge Capital, Others

SUMMARY

Rapido has received commitments of around $70 Mn, and is currently approaching Indian family offices for additional support

This funding may take the company’s valuation to $900 Mn

In FY23, Rapido reported a standalone loss of INR 674.5 Cr, a 53.6% jump from that of INR 439 Cr reported in the FY22

Ride-hailing startup Rapido is likely planning for a $100 Mn (around INR 833.9 Cr) fundraise from its existing investor WestBridge Capital and others.

The company has already received commitments of around $70 Mn and is currently approaching Indian family offices for additional support, Mint reported.

This funding may take the company’s valuation to $900 Mn, the report said, citing a source close to the matter.

Inc42 has reached out to Rapido seeking comments on the latest development. The story will be updated based on the response.

WestBridge backed the company as a lead investor in 2021 during its Series C funding round when it raised $43 Mn.

“It (WestBridge) is our existing investor and invested in every round. They will keep supporting us in future as well, whenever we raise,” said Rapido’s cofounder Aravind Sanka.

Founded in 2015 by Sanka, Rishikesh SR and Pavan Guntupalli, Rapido is a ride-hailing app majorly operating in the bike taxi and auto services segments. Recently, it also launched cab services in some cities. In addition, it also offers peer-to-peer delivery services via Rapido Local.

With a fleet size of 5 Mn bike taxis and 7 Lakh auto-rickshaws, the startup claims to operate in over 100 Indian cities and have over 25 Mn app downloads.

Other than WestBridge, the company also counts Swiggy, TVS Motors, Nexus Ventures, Shell Ventures, among others as its investors.

It reported a standalone loss of INR 674.5 Cr in the financial year 2022-23 (FY23), a 53.6% hike from that of INR 439 Cr reported in the previous fiscal year, hurt by a sharp jump in employee costs during the period.

Interestingly, to take on the competitors, the company recently extended its SaaS-based zero commission model to auto drivers. Back then, Rapido said it is making a shift from an aggregator-commission-led model to introduce a lifetime zero commission model for its auto drivers, aiming to reduce high commission rates and empower them to control their earnings.