Rapido, the ride-hailing startup, has officially joined the unicorn club by raising $120 million (approximately INR 1,000 crore) from WestBridge Capital.
This new funding round has propelled Rapido’s valuation to over $1 billion, marking it as the third Indian startup to achieve unicorn status in 2024, following Krutrim AI and Perfios.
The Series E funding round saw participation from three WestBridge Capital entities: Setu AIF Trust, Konark Trust, and MMPL Trust. Rapido’s parent company, Roppen Transportation Services Pvt Ltd, allocated 95,479 Series E compulsorily convertible preference shares (CCPS) and 95,489 Series E1 CCPS to these entities on July 18.
This investment totals around INR 1,000 crore, with INR 500 crore already received and the remaining to be provided upon call.
Rapido is also in discussions with global investors to secure an additional $20 million. A source disclosed that a US-based family office and a UK-based fund are in talks to invest in the company.
Rapido’s investor portfolio includes notable names such as Swiggy, TVS Motors, Nexus Ventures, and Shell Ventures.
The startup previously raised $180 million in April 2022, led by Swiggy, with contributions from TVS Motors, WestBridge Capital, Nexus Ventures, and Shell Ventures.
Despite the significant capital influx, Rapido faces financial challenges.
The company’s net loss increased by over 50% to INR 674.5 crore in the financial year 2022-23 (FY23) from INR 439 crore in the previous fiscal year.
However, Rapido’s operating revenue saw a substantial rise, growing 3.05 times to INR 443 crore from INR 144.8 crore in FY22.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido primarily focuses on bike taxi and auto transportation services.
Recently, the company expanded its offerings by launching cab services in selected cities and providing peer-to-peer delivery services through Rapido Local.
Rapido’s successful fundraising and subsequent entry into the unicorn club underline the startup’s potential and investor confidence despite financial hurdles it faces.
