Six-year-old bike taxi platform Rapido has announced that it has raised $52 million in a Series C funding round as part of its goal to onboard 50 million users in the next 18 months.
The round saw participation from investors Shell Ventures, Yamaha India, Cred founder Kunal Shah, Spotify India MD Amarjit Singh Batra, and Positive Moves Consulting, as well as from existing investors Pawan Munjal of Hero Group, Westbridge, Nexus Venture, and Everblue Management.
According to Rapido, the proceeds from the funding round would be utilized in making investments in technology, people, and supply to further boost its growth in the country and make affordable transportation a reality for the masses. The firm has raised over $130 million to date, including the $80 million it raised from marquee investors prior to this round
Indian firms have been growing at a never seen before in 2021, attracting the attention of investors from around the globe. Founded by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh, the Bengaluru-based Rapido has not been an exception – the expansion of the hyperlocal delivery market has enabled it to journey into newer sectors with Rapido Store and Rapido Local (Rapido is currently present in around 100 cities across India).
Like many other firms, it has made a comeback after the pandemic struck – in fact, the company claims to have made a recovery of 85% as compared to the pre-pandemic period, and this recovery and growth was attributed to the growing e-commerce and hyperlocal delivery opportunities in India.
It offers both B2C and B2B services. Last year, Rapido started offering last-mile logistics service to retail stores, e-commerce players, and restaurants as part of its entry into the B2B sector.
With over 1.5 million driver-partners (captains) and over 15 million customers, the start-up has carved itself a niche in the three-wheeler category, where it claims to have recorded a growth of four times since 2020. “Even though our product and business model are lucrative and have the potential to churn out an exceptional revenue, this fundraising indicates more of the investors’ confidence in us than the need for capital,” said Aravind Sanka, co-founder of Rapido, in a statement.
