September 5, 2024: Bike Taxi Service startup Rapido has officially joined India’s elite unicorn club after successfully raising $200 million in a Series E funding round. This milestone, achieved on Wednesday, marks a significant milestone for the Bengaluru-based company, which now boasts a post-money valuation of $1.1 billion.
The fresh injection of capital will be instrumental in fueling the bike taxi service expansion across India. The company plans to enhance its technology infrastructure and broaden its reach in key segments, including three-wheelers, taxi-cabs, and bike taxis. This comes as Rapido continues to see rapid growth in the ride-hailing space, providing affordable and efficient urban mobility solutions.
Rapido records daily rides of 2.5 Million
Co-Founder Aravind Sanka expressed enthusiasm for the new phase of growth, stating, “With this new infusion of capital, we are eager to explore and expand our offerings, ensuring we meet the evolving needs of our customers. Over the past year, we’ve experienced significant growth, with our daily rides surging to 2.5 million. This investment will empower us to continue innovating and improving our services, allowing us to better serve our customers and make significant strides in enhancing urban mobility for everyone.”
The bike taxi service startup‘s growth trajectory has been impressive, as it solidifies its position as one of India’s leading low-cost mobility platforms. The company has diversified its services to include a variety of transport options, such as bike taxis, three-wheeler autos, and taxi services, offering customers a range of choices to suit their commuting needs.
Sumir Chadha, Co-founder and Managing Partner at WestBridge Capital, highlighted Rapido’s evolution, saying, “In the five years since our initial investment in Rapido, we’ve seen Aravind, Pavan, Rishikesh, and the team transform it into India’s leading low-cost mobility platform. From dominating bike taxis to making significant strides into 3W autos and cabs, their growth is a testament to their operational rigor and relentless focus on customer and captain satisfaction.”
In addition to its success in fundraising, the bike taxi service financials indicate considerable growth in the fiscal year 2022-23, with revenue jumping to ₹497.5 crore compared to ₹157.9 crore in FY 2021-22. However, the company’s net loss also widened during the same period, reaching ₹674.6 crore from ₹439 crore the previous year, according to data from Tracxn. Despite the growing losses, the substantial revenue increase highlights Rapido’s ability to capture market share as it continues scaling its operations.
Looking forward, the bike taxi service startup aims to leverage its new funding to push deeper into India’s urban transport market, with an emphasis on improving user experience and expanding into underserved regions. As the demand for convenient and cost-effective mobility solutions grows, Rapido is well-positioned to play a key role in shaping the future of transportation in India.
The latest funding round was led by long-time backer WestBridge Capital, with additional contributions from Nexus Venture Partners, Think Investments, and Invus Opportunities.
