According to reports, ride-hailing startup Rapido has raised $60 million (about INR 503 crore) from Dutch investment behemoth Prosus, putting it on the cusp of obtaining a new round of funding. WestBridge Capital was the original leader of Rapido’s $200 million Series E investment, which now includes this additional funding. As Rapido keeps growing its footprint in the Indian mobility industry, the most recent financing round will support its expansion.
Strategic Investment for Growth
Prosus will purchase a portion of Rapido through a combination of primary and secondary share sales, according to sources familiar with the transaction. It is anticipated that this action will allow early investors to partially depart the business while maintaining the company’s worth. The $60 million investment completes Rapido’s Series E funding round, which recently saw the company’s valuation of $1.1 billion drive it into the coveted unicorn club.
Rapido’s Journey to Unicorn Status
Rapido, a major force in India’s mobility industry, was founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka. The company started out specialising on bike taxis but has subsequently broadened its offerings to include auto rickshaws and, in some areas, taxi services. Through its Rapido Local platform, Rapido also provides peer-to-peer delivery services that let consumers ship packages within their city.
Only a month ago, Rapido became a unicorn after raising $200 million in its Series E round, which was headed by WestBridge Capital. This achievement confirms Rapido’s standing as one of the top ride-hailing services in India, and Prosus’s impending investment will fortify the business’s financial base even further.
Backed by Industry Leaders
Due to its remarkable growth trajectory, Rapido has received significant support from major players in the sector, such as Swiggy, TVS Motor Company, and Shell Ventures. The business has raised more than $625.75 million in capital so far, establishing itself as a formidable rival in the Indian mobility market.
The company’s financial success reflects the expansion of its operations. Rapido’s operational revenue increased significantly from INR 144.8 crore in FY22 to INR 443 crore in FY23. Nevertheless, the business also disclosed a net loss of INR 674.5 crore, which was 50% higher than the year before. Rapido’s capacity to attract significant investments in spite of these setbacks highlights its potential for sustained expansion.
Prosus’ Expanding Portfolio in India
One of the busiest investors in India’s tech sector, Prosus, has been increasing its stake in Indian firms over time. According to rumours that arose just days ago, Prosus was planning to invest $30 million in the hyperlocal services platform Urban Company, giving early investor Bessemer Venture Partners a partial exit. Prosus also contributed INR 350 crore to the INR 900 crore pre-IPO financing of omnichannel jewellery company Bluestone in August.
Additionally, Prosus is anticipated to gain a great deal from Swiggy’s impending IPO, another Indian unicorn in which it owns stock. In order to strengthen its presence in India’s thriving digital and startup environment, the investing giant intends to sell 11.8 crore shares as part of Swiggy’s first public offering (IPO).
Final Thoughts
Rapido is scheduled to close its $200 million Series E round with the $60 million investment from Prosus, guaranteeing that the business would have enough cash on hand to support future expansion. In addition to giving Rapido the resources it needs to further growing its services throughout India, this new funding will further establish Rapido as a major force in the ride-hailing sector. Rapido’s ability to draw such well-known support underscores the company’s tremendous potential for long-term success as Prosus continues to increase its investments in the Indian market.
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