PC: Inc42
In one of the largest funding rounds in India’s ride-hailing space, Rapido has raised USD 200 million in its Series E funding round, led by WestBridge Capital. Key investors who participated in this funding round included Think Investments, Nexus Venture Partners, and Invus Group, demonstrating market belief in the growth trajectory and innovative capabilities of Rapido.
A $120 million investment by WestBridge Capital sent Rapido to a valuation of $1.1 billion, creating a huge milestone for the Bengaluru-based firm as it continues to cement its place in the ride-hailing competitive landscape. This capital infusion will be deployed strategically to give strength to the four-wheeler ride-hailing services of Rapido, essentially scaling up the operations of its cab services that were launched in December 2023. It would, no doubt, render Rapido more competitive and enable it to challenge successfully the two behemoths, Ola and Uber, in the booming Indian market.
Aravind Sanka, the co-founder of Rapido, confirmed the funding development, saying it is committed to driving growth, innovation and customer value in the evolving ride-hailing segment. According to the internal documents accessed by Entrackr, Rapido has emerged as the second-largest player in the overall ride-hailing space, including bikes, autos, and cabs, by surpassing Ola and behind Uber. As of March 2024, Rapido processed an impressive 16.5 lakh rides daily, showcasing its robust market presence and growing popularity among consumers.
Its diversified service offering includes auto-rickshaws, bikes, and cabs, wherein auto-rickshaws account for 40% of the company’s Gross Merchandise Value, while bikes and cabs each take up 30%. On a more detailed level, bike taxis themselves make up more than 50% of all rides taken up by Rapido, further building on the belief that it has also been able to address the various needs and preferences for transport from its customers.
The shareholding pattern of Rapido has reshaped post-funding round with WestBridge emerging as the largest external stakeholder in the company, holding 32.88 per cent ownership, followed by Swiggy and Nexus Ventures with 12.32 per cent and 8.19 per cent, respectively. Primed for sustained growth and market leadership, entry of Think Investments, Nexus, and Invus Group will further diversify and strengthen the investor base of Rapido.
While it has grown rapidly on revenue and saw operating revenue more than triple to Rs 443 crore in FY23, losses of Rapido grew by 54% to Rs 675 crore over the same period. Given this backdrop, improvement in operations, increasing streams of revenues, and improving profitability remain key focus for the company going ahead as it strives to provide seamless and efficient ride-hailing services to its customer base.
Successful completion of this Series E funding round epitomizes Rapido’s commitment toward innovation, customer-centricity, and further market expansion, while opening a new chapter in growth, competition, and value creation in the dynamic ride-hailing sector.
