Bengaluru-based ride-hailing unicorn, Rapido, has accelerated its growth trajectory with a fresh infusion of capital. The company has reportedly secured Rs 250 crore (approximately $29.7 million) from global tech investment giant, Prosus, according to regulatory filings. This investment forms part of Rapido’s ongoing Series E funding round, targeting $200 million. This latest boost brings Rapido’s valuation to around Rs 8,726 crore (just over $1 billion), giving Prosus a 2.9% stake in the company, according to various media reports.
Fueling Expansion: The Series E Round
This significant investment from Prosus comes hot on the heels of a $120 million funding round led by WestBridge just seven months ago. This consistent flow of capital brings Rapido closer to achieving its ambitious $200 million Series E target. The company’s ability to attract such prominent investors underscores the growing confidence in its business model and future prospects. Reports suggest that some of Rapido’s early investors, including AdvantEdge and individual angel investors, may have partially divested their holdings to accommodate this new wave of investment, making room for the fresh capital injection. This strategic move benefits both the company and the early backers.
Riding the Growth Wave: Rapido’s Journey
Founded by Aravind Sanka and others under the banner of Roppen Transportation Services Pvt. Ltd., Rapido has carved a niche for itself in India’s competitive ride-hailing market. It has emerged as a formidable challenger to established giants like Uber and Ola. Rapido’s success can be attributed to its focus on two-wheeler and auto-rickshaw services, which are particularly well-suited to navigating India’s often congested urban landscapes. These offerings provide a cost-effective and efficient alternative for commuters, allowing them to bypass traffic bottlenecks and save on travel expenses.
Expanding Horizons: Reaching 500 Cities
Rapido’s expansion strategy is ambitious and far-reaching. The company has been steadily extending its services across India and has set its sights on reaching 500 cities by the end of the current year. This aggressive growth plan demonstrates Rapido’s commitment to capturing a larger share of the market and solidifying its presence across the country. The company reportedly facilitates approximately 3.6 million rides daily, a testament to the strong demand for its services. This impressive ride volume further validates Rapido’s business model and its appeal to Indian commuters.
Financial Performance: A Positive Trajectory
Rapido’s financial performance reflects its strong growth trajectory. The company reported a 46.3% year-on-year revenue increase in the fiscal year ending March 2024, reaching Rs 648 crore. Furthermore, Rapido has demonstrated improved financial efficiency by reducing its losses by 45% to Rs 371 crore during the same period. These positive financial indicators suggest that Rapido is on a sustainable path to profitability and is well-positioned for continued growth in the dynamic Indian ride-hailing market. The combination of strategic investments, a well-defined business model, and a focus on customer needs has propelled Rapido’s success, and the company appears poised for further expansion and innovation in the years to come.
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