Rapido, a leading ride-sharing platform in India, has entered the prestigious unicorn club after securing $200 million in its Series E funding round. This investment, spearheaded by WestBridge Capital, values Rapido at $1.1 billion, marking a major milestone in the company’s growth journey.
New Investment Propels Rapido’s Expansion
Apart from WestBridge Capital, the funding round also saw participation from new investors such as Think Investments and Invus Opportunities, alongside existing backer Nexus Ventures. With this significant capital infusion, Rapido plans to expand its operations across India and improve its technology infrastructure, enhancing the overall service experience for users.
The funds will be used to grow the company’s presence in all its service categories, including bike-taxis, three-wheeler autos, and taxicabs. According to Aravind Sanka, Co-founder of Rapido, the company has witnessed rapid growth over the past year, with daily rides increasing to 2.5 million. “With this new infusion of capital, we are excited to expand our offerings and reach more customers across the country,” he said.
WestBridge’s Continued Commitment to Rapido
WestBridge Capital has been a long-time supporter of Rapido, with its initial investment dating back to 2019. Over the years, the venture capital firm has participated in multiple funding rounds, including in 2021 and 2022. Sumir Chadha, Co-founder and Managing Partner at WestBridge Capital, praised Rapido’s growth and innovation, stating, “In just five years, Rapido has transformed into India’s leading low-cost mobility platform, offering services that meet the needs of millions of customers.”
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A Journey from Bike Taxis to Multi-Modal Ride Sharing
Rapido was founded in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR, originally as a bike-taxi service. Over time, the company expanded its service offerings to include three-wheeler autos and four-wheeler taxis. In October of last year, Rapido ventured into four-wheeler ride-sharing, further solidifying its position as a versatile mobility platform.
Expanding Reach Beyond Metros
In addition to its service expansion, Rapido has also grown geographically, establishing a presence in over 100 cities, including tier 2 and tier 3 cities. This expansion has helped the company tap into new markets and cater to a broader audience. As a result, the company’s operating revenue saw a significant increase, tripling to ₹443 crore in FY23. However, the company’s losses also widened, reaching ₹675 crore compared to ₹439 crore in FY22.
With this latest round of funding, Rapido aims to continue its rapid expansion and become a dominant player in India’s ride-sharing market, catering to millions of users across various transportation modes.