Hyderabad-based ride-hailing startup Rapido has turned around from a rather timid time period of revenue and growth, to raise $120Mn in Series E, valuing the company at over $1 billion. The round was led by existing investor WestBridge Capital.
The recent Series E round was a substantial financial boost for Rapido, with WestBridge Capital leading the investment through multiple vehicles, including Setu AIF Trust, Konark Trust, and MMPL Trust. According to regulatory filings with the Registrar of Companies (RoC), Rapido’s board approved the allotment of 10 equity shares, 95,479 Series E shares, and 95,489 Series E1 compulsory convertible preferred shares (CCPS) at an issue price of ₹52,467 per share, aggregating to ₹1,002 crore, or $120 million. This investment propels Rapido’s valuation to approximately ₹8,517 crore, slightly over $1 billion.
With the newly acquired funds, Rapido aims to enhance its technological infrastructure and expand its auto and cab services into new cities across India. The company, founded in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR, has steadily broadened its service offerings. Initially starting as an auto and bike taxi aggregator, Rapido has recently ventured into hyper-local parcel delivery and cab services.
Rapido’s emergence as a unicorn is part of a broader trend in the Indian startup ecosystem, which has seen a resurgence of companies reaching the $1 billion valuation mark after a lull in 2022, 2023 and early 2024.
Rapido’s rise to unicorn status places it in direct competition with established players like Ola, Uber, and Namma Yatri. The company has been able to carve out a significant market share in the competitive ride-hailing industry since its inception. Furthermore, Rapido follows a zero-commission model for drivers, as well as a subscription-based approach rather than a per-ride commission. This approach attracts more driver partners and ensures better service availability for customers.
Founded nine years ago, the startup has differentiated itself by focusing primarily on bike taxis, a segment which is sizeably large in India but still remains untapped competitors such as Ola and Uber. This strategic approach has enabled the company to capitalize on the widespread use of two-wheelers in India’s urban centers, where traffic congestion and limited public transportation options have created a robust demand for efficient last-mile connectivity.
The latest funding round follows a Series D investment of $180 million in April 2022, led by foodtech giant Swiggy, alongside TVS Motor Company, WestBridge, Shell Ventures, and Nexus Ventures. At that time, Rapido was valued at $830 million. To date, the company has raised approximately $329 million, according to data platform Tracxn, with WestBridge being the largest stakeholder at 25.6%. Despite significant growth, Rapido’s financial journey has seen its share of challenges. The company’s operating revenue tripled to ₹443 crore in FY23, but this growth also resulted in a 54% increase in losses, amounting to ₹675 crore.
