Rapido, a ride-sharing startup, has raised $200 million in its Series E funding round, reaching a valuation of $1.1 billion, making it a unicorn. The round was led by WestBridge Capital, with participation from Nexus Ventures, Think Investments, and Invus Opportunities.
The fresh funding will help Rapido expand its four-wheeler taxi service, which competes with giants like Ola and Uber. The company is also growing its quick commerce business by using its two-wheeler fleet for local deliveries. Rapido has made significant strides in the ride-hailing industry, with daily rides now reaching up to 2.5 million.
What is Rapido?
Rapido is an Indian ride-sharing platform that started as a bike-taxi service and has since expanded into three-wheeler and four-wheeler ride-sharing. Founded in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR, the company aims to provide affordable and convenient transportation options to people in cities across India.
In addition to its traditional ride-hailing services, Rapido also uses its fleet for quick deliveries in the fast-growing hyperlocal delivery market. The company is competing with major players like Ola and Uber and has reached a valuation of $1.1 billion, making it a unicorn.
Why is This Funding Significant?
The $200 million funding raised by Rapido is significant for multiple reasons. It propels the company to unicorn status, with a valuation of $1.1 billion, marking a major milestone in its growth. This funding will help Rapido expand its four-wheeler taxi service, which directly competes with industry giants like Ola and Uber, and also boost its two-wheeler fleet for quick commerce, positioning it well in the fast-growing delivery market.
The investment further strengthens Rapido’s competitive edge, as it has already seen impressive growth, with daily rides surging to 2.5 million. With this capital, Rapido can scale its technology, enhance its operations, and extend its presence across India, including tier 2 and 3 cities.
The support from leading investors such as WestBridge Capital, Nexus Ventures, Think Investments and Invus Opportunities reflects confidence in the company’s potential, giving Rapido the resources to compete more aggressively in the ride-hailing and logistics space.
How Will the Funds Be Used?
The funds raised by Rapido will be primarily used to expand its four-wheeler taxi services, which were launched in December 2023. This expansion aims to directly compete with major players like Ola and Uber in the ride-hailing market.
In addition, Rapido plans to scale its two-wheeler fleet for quick commerce, leveraging it for local deliveries, further tapping into the growing hyperlocal delivery sector. The funds will also be used to enhance Rapido’s technology platform, improving service delivery and operational efficiency.
With a focus on growing across all categories—bike taxis, three-wheelers, and cabs—the company aims to strengthen its presence in cities across India, including tier 2 and 3 cities. The investment will help Rapido continue its rapid growth and position itself as a significant player in the mobility and delivery sectors.
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Founders’ Perspective
Rapido was founded in 2015 by Pavan Guntupalli, Aravind Sanka, and Rishikesh SR. From the founders’ perspective, the recent funding and growth are a reflection of the company’s hard work and dedication over the years. Aravind Sanka, the CEO, highlighted the company’s journey from a small two-wheeler player to a significant operator in the three-wheeler and four-wheeler space.
The founders are eager to use the funds to scale Rapido’s operations, grow in new segments, and solidify its position as a leader in India’s mobility space.
Key Takeaways
- Unicorn Status: Rapido has achieved unicorn status, with a valuation of $1.1 billion following a $200 million funding round, marking a significant milestone in the company’s growth.
- Expansion into Four-Wheelers: The company plans to use the new funds to expand its recently launched four-wheeler taxi service, competing with major players like Ola and Uber.
- Quick Commerce Growth: Rapido is leveraging its two-wheeler fleet to venture into the fast-growing quick commerce sector, focusing on local deliveries.
- Rapid Growth: The company has seen impressive growth, handling 2.3 to 2.5 million daily orders, and has grown its top line over 12 times in the past two years.
- Aggressive Plans for the Future: Rapido aims to become a significant player in both the three-wheeler and four-wheeler markets, to become the number two player in the ride-hailing space.
Conclusion:
Rapido’s recent funding and impressive growth reflect its strong position in India’s competitive mobility and delivery market. With a valuation of $1.1 billion, the company has evolved from a two-wheeler service to a significant player in the three-wheeler and four-wheeler ride-sharing space.
Its plans focus on expanding its four-wheeler services to challenge industry giants like Ola and Uber, while also tapping into the quick commerce market with local deliveries. As Rapido continues to grow, it aims to strengthen its presence in tier 2 and 3 cities, solidifying its place as a leading mobility platform in India.
From Bikes to Cars: Rapido Expands, and You’re Invited to Ride Along!
