Bengaluru-based ride-hailing startup Rapido has secured Rs 250 crore (about $29.7 million) in fresh funding from Dutch investment firm Prosus. This investment is part of Rapido’s ongoing Series E funding round, which is expected to raise a total of $200 million.
According to reports, with this latest investment, Rapido’s valuation has reached Rs 8,726 crore (just over $1 billion). The funding also gives Prosus a 2.9% stake in the company.
Rapido: Growth and Investment History
Rapido has been attracting significant investments over the years. Around seven months ago, the company raised $120 million in a financing round led by WestBridge. The latest infusion from Prosus brings Rapido closer to achieving its $200 million funding goal.
Reports suggest that some of Rapido’s early investors, including AdvantEdge and angel investors, may sell part of their shares to allow new investors to enter. This move could provide additional liquidity to early backers while enabling Rapido to bring in fresh capital.
Rapido, operated by Roppen Transportation Services Pvt. Ltd., has positioned itself as a strong competitor to Uber and Ola in the Indian ride-hailing industry. The company provides affordable transportation options by offering bike taxis and auto-rickshaw rides.
With its latest funding, Rapido aims to expand its services to 500 cities across India by the end of this year. The company already completes around 3.6 million rides daily, highlighting the growing demand for its services. Affordable pricing and quick mobility solutions have helped Rapido attract more users in India’s congested urban areas.
Rapido Future in Mobility Market
Rapido has witnessed strong year-on-year revenue growth. In the fiscal year ending March 2024, the company reported a revenue increase of 46.3%, reaching Rs 648 crore. Additionally, Rapido reduced its losses by 45% to Rs 371 crore, signaling improved financial efficiency.
The company’s strategy of expanding its fleet of two-wheelers and auto-rickshaws has contributed to higher user adoption rates and better revenue generation.
With new funding, improved revenue, and aggressive expansion plans, Rapido is well-positioned to challenge Ola and Uber in India’s mobility sector. Its focus on affordable last-mile transportation solutions has helped it gain a loyal customer base.
The latest investment from Prosus reaffirms investors’ confidence in Rapido’s business model and long-term growth potential. As Rapido continues to expand, it is set to play a bigger role in India’s fast-growing ride-hailing market.
