Ride-sharing startup Rapido, which competes with giants like Ola and Uber, has raised $200 million in a Series E round funds round with a valuation of $1.1 billion.
The round was led by WestBridge Capital, which contributed $120 million, with additional investments from Think Investments, Nexus Venture Partners and Invus Group.
Becoming a unicorn startup
Last month, it was reported that WestBridge’s $120 million investment helped propel Rapido into the unicorn startup club.
Before the ride-hailing company, Perfios and Bhavish Aggarwal’s AI startup Krutrim AI joined the unicorn startup clubIt is noteworthy that Krutrim is India’s first unicorn AI startup.
Expansion of taxi services
Rapido plans to use the newly raised capital to expand its operations across the country and expand its four-wheeled vehicle transportation services, which Released in December of last year.
The startup initially launched this service in three cities: Delhi, Bengaluru and Hyderabad.
While the taxi segment is largely dominated by Uber and Ola, the latest investment will help the Aravind Sanka-led company compete more effectively with these industry giants.
“With this new injection of capital, we are eager to explore and expand our offering, ensuring we meet the evolving needs of our customers. Over the past year, we have experienced significant growth, with our daily trips increasing to 2.5 million. This investment will allow us to continue to innovate and improve our services, enabling us to better serve our customers and make significant strides in improving urban mobility for all,” said Sanka.
Rapido’s financing and investors
Before the current round, Fast raised $180 million in April 2022 in a Series D round led by foodtech major Swiggy, with participation from TVS Motor Company and existing investors Westbridge, Shell Ventures and Nexus Ventures.
So far, the startup has raised over $500 million in funding from investors. According to CrunchBase, it acquired two companies, Getbike in 2018 and Vahananlytics in 2019.
Rapido was founded in 2015 by Aravind Sanka, Pavan Guntupalli and Rishikesh SR.
Since then, the ride-sharing company has extended its reach beyond metropolitan cities, establishing presence in over 100 cities, including tier-2 and tier-3 cities across the country.
Investor comments
Sumir Chadha, Co-Founder and Managing Partner, WestBridge Capital, said, “In the five years since the initial investment made in Rapido, we have seen Aravind, Pavan, Rishikesh and the team transform it into India’s leading low-cost mobility platform. From mastering bike taxis to making significant strides in autos and 3W taxis, their growth is a testament to their operational rigor and relentless focus on customer and captain satisfaction.”
“We congratulate the team for their efficient expansion strategy, which now positions Rapido among the most used consumer internet apps in India. This latest round of funding underscores our continued commitment to their journey,” Chadha added.
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