Rapido, a world brand in the ride-hailing sector, announced that Prosus has raised ₹250 crore (about $29.7 million) in Series E funding. This investment comes in 7 months after the ride-hailing service raised $120 million in a WestBridge-led funding round that reflects investor confidence in Rapido’s growth journey.
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Details of the Funding Round
Rapido’s board passed a special resolution confirming the funding round to issue 47,743 Series E preference shares at an issue price of ₹52,467 each. The current round is part of a bigger target as part of the overall Series E fund-raise along with company valuation at $1.1 billion, aiming to raise about $200 million.
Previously, it was reported that Rapido was to raise about $60 million in a mixture of primary and secondary funding from Prosus. The fresh round of funding will bring Prosus’ stake in Rapido to a little less than 2.9%.
Company Performance and Growth
Rapido has reported strong growth in financial performance, realizing a 46.3% year-on-year rise which brought the financial year until March 2024 revenues to ₹648 crores this period. Further, it has dropped losses by 45%, dropping to ₹371 crores this period.
In Q2FY25, Rapido reported extraordinary growth in its gross order volume, attaining a total of ₹2,461 crore, a rise of 2.5X from ₹977 crore the same quarter last year, and the number of rides doubled to 207 million.
Future Outlook
As Rapido enhances its service offerings, this funding round will be crucial in supporting its growth strategies. Today, with a solid financial footing and growing market demand, Rapido is well-placed to capitalize on the opportunities in the ride-hailing industry.
The company’s constant delivery of better services while keeping operational losses to a bare minimum has gotten it on the investor and user map. Moving forward, customer satisfaction and innovation will be pivotal for staying competitive within a changing ride-hailing environment.
In conclusion, the successful raising of ₹250 crore from Prosus marks a significant milestone for Rapido in continuing its journey in the competitive ride-hailing market. With robust growth metrics and a clear vision, Rapido is now gearing itself to consolidate its position as a leader in the industry. As the company marches ahead, other stakeholders will closely watch its following steps on utilizing this new funding to boost its offerings and increase its market reach.
