Rapido joins India's unicorn club after fresh $120 million funding
What's the story
Rapido, an Indian ride-hailing platform, has achieved unicorn status after securing $120 million in fresh capital.
The funding round was led by existing investor WestBridge Capital, catapulting Rapido's post-money valuation to $1 billion.
This development positions Rapido as the third unicorn start-up created in India this year, following Perfios and Krutrim AI, a venture by Ola founder Bhavish Aggarwal.
Investment details
WestBridge Capital's significant investment in Rapido
WestBridge Capital's investment in Rapido underscores a significant commitment to the Bengaluru-based bike taxi company.
This funding round comes at a time when private financing markets are tightening, as evidenced by only two new unicorns, Zepto and InCred Wealth, being minted in 2023.
Additionally, ET's sources suggest that Rapido is poised to secure an extra $20 million from global investors.
Business strategy
Expansion and competition strategy
Rapido has adopted a subscription-based plan for auto-rickshaw drivers on its platform, mirroring the strategies of competitors Ola and Uber.
This move is primarily aimed at competing with Namma Yatri, a Google-backed firm that does not charge drivers any commission.
In addition to this, Rapido has broadened its services to include cab-hailing, positioning itself as a comprehensive ride-hailing company.
Company profile
Rapido's journey and total funding to date
Founded in 2015 by Arvind Sanka, Pavan G, and Rishikesh SR, Rapido has raised a total of $329 million in funding so far.
The company's last valuation was at $825 million after a $180 million funding round in April 2022, which was backed by Swiggy. Notably, Swiggy did not participate in the current investment round.
Other investors in Rapido include Nexus Venture Partners and Integrated Capital.