Rapido Soars to Unicorn Status with $120M Boost from WestBridge Capital

Main Points:

1. Rapido, a mobility startup, has become a unicorn with a $120 million Series E funding round led by WestBridge Capital.

2. WestBridge Capital now holds a 26% stake, while Swiggy, owning over 15%, did not participate in this round due to IPO preparations.

3. Rapido claims to have surpassed Ola, becoming the second-largest player in the ride-hailing space (bike, auto, and cabs) after Uber.

4. Founded in 2015 by Arvind Sanka, Pavan G, and Rishikesh SR, Rapido leads the bike taxi space and dominates the auto-hailing segment in southern India.

5. Despite regulatory hurdles in key markets, the new funding will be invested in technology, R&D, and product innovations to enhance driver earnings, customer convenience, and sustainable mobility solutions.

Rapido Soars to Unicorn Status with $120M Boost from WestBridge Capital

Rapido, a pioneering mobility startup, has proudly joined the unicorn club with a substantial $120 million Series E funding round led by its largest backer, WestBridge Capital. This significant milestone was achieved through investments from three different vehicles: Setu AIF Trust, Konark Trust, and MMPL Trust. According to regulatory filings, the board at Rapido approved the issuance of ten equity shares, 95,479 Series E, and 95,489 Series E1 compulsory convertible preferred shares (CCPS) at an issue price of Rs 52,467 per share, amounting to a total of Rs 1,002 crore or $120 million.

WestBridge Capital now holds a 26% stake in Rapido, solidifying its position as the largest stakeholder in the company. Notably, Swiggy, which owns over 15% of Rapido, chose not to invest in this round as it is preparing for its own IPO. This funding round comes after Rapido raised $180 million in a Series D funding round in April 2022.

Rapido has made remarkable strides in the ride-hailing space, claiming to have surpassed Ola to become the second-largest player after Uber. As of March 2024, Uber processes 19.3 lakh rides daily, while Rapido handles 16.5 lakh rides, and Ola follows with 13 lakh rides.

Rapido | A Mobility Startup

Founded in 2015 by Arvind Sanka, Pavan G, and Rishikesh SR, Rapido has quickly emerged as a leader in the bike taxi space and dominates the auto-hailing segment in southern India. The company's SaaS play with a zero-commission model, coupled with strategic cash backs and IPL spending, has proven highly effective. Rapido's commitment to innovation and customer satisfaction has set it apart in the competitive mobility market.

However, Rapido's growth comes at a time when the bike taxi segment faces regulatory challenges in key markets such as Karnataka and Delhi. Despite these hurdles, the company remains optimistic about its future prospects and continues to focus on enhancing driver earnings, customer convenience, and sustainable mobility solutions.

With the new funding, Rapido plans to invest in technology, research and development, and product innovations. The company's vision is to empower drivers, integrate public transport, and improve customer convenience, creating a reliable, affordable, and seamless transportation experience for all users.

In the words of the founders, "With our people-first approach, our goal is to build empathetic products and technology that are 10 times better. By collaborating with the community, government, and business, we aspire to create an impact similar to UPI in India and Linux worldwide. This funding will enable us to innovate and grow further."

As Rapido continues to expand its footprint and revolutionize the mobility sector, the future looks bright for this dynamic startup. With strong financial backing and a clear vision, Rapido is well-positioned to achieve new heights and set new standards in the ride-hailing industry.