Swiggy-backed mobility startup Rapido has officially entered the unicorn club following a significant $120 million Series E funding round. The investment, spearheaded by its largest backer WestBridge Capital, was funneled through three different investment vehicles: Setu AIF Trust, Konark Trust, and MMPL Trust.
In a recent regulatory filing with the Registrar of Companies, Rapido’s board disclosed that it has allotted 10 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, totalling Rs 1,002 crore (approximately $120 million). This new funding round has propelled Rapido to a post-money valuation of Rs 8,517 crore, or slightly over $1 billion.
This latest round of funding follows Rapido’s $180 million Series D round in April 2022, when the company’s valuation was approximately $850 million. With this infusion, Rapido’s total fundraising exceeds $300 million across various rounds.
WestBridge Capital emerged as Rapido’s largest stakeholder with a 26% share, while Swiggy, which holds over 15% of Rapido, opted out of this round, possibly due to its own impending IPO.
In recent developments, Rapido has reportedly outpaced Ola, claiming the position of the second-largest player in India’s ride-hailing market, trailing only behind Uber. Rapido processes approximately 16.5 lakh rides daily, compared to Uber’s 19.3 lakh and Ola’s 13 lakh rides.
Rapido’s zero-commission model, combined with cashback offers and significant spending on IPL advertising, seems to be paying off. The company has established itself as a leader in the bike taxi segment and dominates the auto-hailing market in southern India.
Although Rapido has yet to release its FY24 financials, its FY23 operating revenue surged threefold to Rs 443 crore. However, this growth in scale was accompanied by a 54% increase in losses, which stood at Rs 675 crore for the same period.
