Rapido becomes India's latest unicorn with $1.1 billion valuation

Rapido, India’s prominent ride-sharing platform, has joined the coveted unicorn club with a striking $1.1 billion valuation following a successful $200 million Series E funding round.

The latest investment, spearheaded by WestBridge Capital, signifies a major leap for Rapido. The round also saw contributions from Think Investments, Invus Opportunities, and existing backer Nexus Ventures.

Rapido plans to utilize the new capital to broaden its operational footprint across India, enhance its technology platform, and upgrade service quality. The company aims to bolster its offerings, which now include bike-taxis, auto-rickshaws, and cabs.

Co-founder Aravind Sanka expressed enthusiasm about this growth milestone. “This new investment propels us into an exciting phase of expansion. Our daily rides have surged to 2.5 million, showcasing our rapid growth,” he noted.

Founded in 2015, Rapido initially focused on bike taxis and later expanded into three-wheeler and four-wheeler services. The company has made significant inroads into over 100 cities, including tier 2 and tier 3 locations, contributing to its rapid ascent.

Despite its expansion, Rapido has yet to achieve profitability. The company’s operating revenue for FY23 reached Rs 443 crore, but losses also grew to Rs 675 crore. However, with the recent funding, Rapido is optimistic about improving its financial trajectory.

WestBridge Capital’s Sumir Chadha highlighted the company’s journey, stating, “Rapido has evolved remarkably, transforming into a leading low-cost mobility platform. Their progress from bike taxis to auto-rickshaws and cabs reflects a strong commitment to customer satisfaction.”

As the ride-sharing sector remains competitive with major players like Ola and Uber, Rapido’s unique focus on low-cost bike taxis and its expansion into smaller cities have provided it with a distinct advantage.