In Short:
Rapido, a ride-hailing startup, has raised $120 million in Series E funding led by existing investor WestBridge, becoming a unicorn. Founded in 2015, Rapido has raised a total of $430 million and expanded into cabs and parcel delivery. The company has experienced significant revenue growth, but also a 54% increase in losses in FY23. They compete with Ola, Uber, and Namma Yatri.
Rapido Joins Unicorn Club with $120 Million Funding Round
Exciting news alert! The popular ride-hailing startup Rapido has recently secured a whopping $120 million in funding in its latest Series E round. The funding was led by its existing investor WestBridge, propelling Rapido into the esteemed unicorn club!
Fresh Capital Injection
In a regulatory filing, it was revealed that WestBridge invested through three of its related entities – Setu AIF Trust, Konark Trust, and MMPL Trust, solidifying their support for Rapido’s growth.
Company Background
Established in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR, Rapido has been making waves in the ride-hailing industry. After the successful Series D funding round in April 2022, where they raised $180 million led by Swiggy, Rapido’s valuation soared to $800 million. The total funds raised by Rapido now amount to $430 million.
Diversifying Services and Expansion Plans
Originally focusing on auto and bike taxi aggregation, Rapido has now expanded its services to include cabs as well. The company has ambitious plans to introduce its auto and cab services to more cities across India. In addition, Rapido has ventured into hyper-local parcel delivery and cab services to further diversify its offerings.
Rapid Rise to Unicorn Status
Rapido’s latest funding round has solidified its position as the third Indian startup to achieve unicorn status this year, following in the footsteps of fintech Perfios and AI startup Krutrim.
Unique Approach and Growth Metrics
Setting itself apart from competitors like Ola, Uber, and Namma Yatri, Rapido has introduced subscription-based plans for auto-rickshaw drivers on their platform, rather than charging a traditional booking fee or commission for each transaction. This innovative strategy has contributed to Rapido’s rapid growth.
Although specific financial figures for FY24 are not yet disclosed, Rapido reported a remarkable 3X increase in operating revenue to ₹443 crore during FY23. However, the rapid expansion also led to a 54% increase in losses, amounting to ₹675 crore in FY23.
