Rapido To Get Another Tank Full Of Investments, Likely To Raise $60 Mn From Prosus

Ride-hailing unicorn Rapido is reportedly set to raise $60 Mn (INR 503 Cr) from Dutch investment major Prosus in a mix of primary and secondary share sales.

Sources told Entrackr that the terms of the deal have already been finalised, adding that the fundraise will be part of the mobility giant’s ongoing $200 Mn round.

“Prosus will acquire a $60 Mn stake in Rapido. The terms of the deal have been finalized, and it will also enable partial exits for early backers,” a source reportedly said. 

Another person familiar with the development reportedly said that the $60 Mn round will mark the conclusion of Rapido’s Series E round. As per the report, sources also hinted that there will be no change in the company’s valuation. 

This comes a month after Rapido officially announced that it secured $200 Mn as part of its Series E round led by existing investor WestBridge Capital. The fundraise catapulted the company into the unicorn club with a valuation of $1.1 Bn.

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 last year. Besides, it also offers peer-to-peer delivery services via Rapido Local. 

Backed by the likes of foodtech major Swiggy, TVS Motor Company, Shell Ventures and others, the startup has raised more than $625.75 Mn to date. 

On the financial front, Rapido reported a net loss of INR 674.5 Cr in the financial year 2022-23 (FY23), up 50% YoY. Meanwhile, operating revenue jumped to INR 443 Cr in the fiscal against INR 144.8 Cr in FY22.

The development comes at a time when Prosus has been doubling down on its India investments. Just days ago, reports surfaced that the investment giant was looking to pump $30 Mn into the hyperlocal services startup Urban Company in a secondary deal, giving a partial exit to Bessemer Venture Partners.

In August, Prosus participated in omnichannel jewellery brand Bluestone’s INR 900 Cr pre-IPO round and invested INR 350 Cr in the company. The investor is also expecting a windfall from foodtech major Swiggy’s IPO, where it plans to sell 11.8 Cr shares as part of the OFS component.