Ola and Uber rival, Rapido, has become the India’s newest unicorn startup. The ride-hailing startup achieved this milestone after raising $120 million (over Rs 1,000 crore) in funding from existing investor WestBridge Capital, resulting in a post-money valuation of $1 billion. An ET report suggests that Rapido may secure an additional $20 million from global investors.

Rapido’s Funding Journey and Investors

To date, Rapido has successfully raised over $430 million in funding from a diverse group of investors. These include TVS Motor Company, Nexus Ventures, Shell Ventures, Kunal Shah (founder of CRED), Yamaha, Pawan Munjal Family Trust, Nexus Venture Partners, and Positive Moves. According to CrunchBase, Rapido acquired two companies: Getbike in 2018 and Vahananlytics in 2019.

Founders and Expansion

Rapido was founded in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR in Hyderabad. Initially, the startup focused on offering auto and bike taxi services. Over time, Rapido expanded its services to include cab rides, competing with established players like Ola and Uber.

Recent Funding Rounds

Before the latest funding round, Rapido raised $180 million in April 2022 during its Series D round. This round was led by foodtech major Swiggy, with participation from TVS Motor Company and existing investors WestBridge Capital, Shell Ventures, and Nexus Ventures.

Rapido’s Market Position

Rapido’s entry into the unicorn club highlights its growing prominence in India’s competitive ride-hailing market. As the startup continues to secure significant investments, it is well-positioned to challenge industry giants Ola and Uber. The additional funding will likely fuel Rapido’s expansion plans and enhance its service offerings.

India’s Growing Unicorn Ecosystem

Rapido’s achievement follows closely behind Perfios and Bhavish Aggarwal’s AI startup Krutrim AI, which also joined the unicorn club. Krutrim AI is notable for being India’s first AI unicorn startup. Rapido’s success story adds to the growing list of Indian startups achieving unicorn status, showcasing the dynamic and rapidly evolving startup ecosystem in the country.

Rapido’s rise to unicorn status underscores its potential and ambition within the ride-hailing industry. With significant backing from prominent investors and continued growth, Rapido is set to make a substantial impact in the market. As the company moves forward, it will be interesting to see how it leverages this new funding to expand its operations and compete with established players like Ola and Uber.