Ride-hailing app Rapido has raised $200 million in its Series E funding round, led by WestBridge Capital. The round also included contributions from Think Investments, Nexus Venture Partners, and Invus Group.
WestBridge Capital alone contributed $120 million, with the remaining funds coming from the other three investors. This investment has propelled the Bengaluru-based company to a valuation of $1.1 billion. Last month, Entrackr reported on WestBridge’s investment in Rapido.
According to the company, the new funds will be used to expand their four-wheeler ride-hailing services. Rapido launched its cab services in December 2023, and this expansion will help the company compete with industry giants like Ola and Uber in India.
Internal documents from Rapido indicate that the company has surpassed Ola and now ranks as the number two player in the overall ride-hailing market, which includes bikes, autos, and cabs. As of March 2024, Uber processed 1.93 million rides daily, while Rapido handled 1.65 million rides per day, followed by Ola with 1.3 million rides.
Rapido reports that autorickshaws contribute 40% to its gross merchandise value (GMV), while bikes and cabs each account for 30%. In terms of ride numbers, bike taxis alone make up more than 50%.
As of last month, WestBridge was Rapido’s largest external stakeholder, holding 32.88% of the company, followed by Swiggy and Nexus Ventures with 12.32% and 8.19%, respectively. The shareholding structure is expected to change with further investments from Think Investments, Nexus, and Invus Group.
Rapido’s operating revenue tripled to ₹443 crore in FY23. However, this significant growth also led to a 54% increase in losses, which reached ₹675 crore in FY23. The company has yet to release its FY24 financials.