July 30, 2024: In a significant boost for the ride-hailing sector, Rapido has successfully closed a $120 million Series E funding round, propelled by existing investor WestBridge Capital. This latest investment elevates the company’s valuation to an impressive $1 billion, as confirmed by a recent filing with the Registrar of Companies.
The Series E round saw the bike taxi app firm issue 10 equity shares, 95,479 Series E compulsory convertible preferred shares, and 95,489 Series E1 shares at an issue price of Rs 52,467 each, amounting to a total consideration of approximately Rs 1,002 crore. This funding milestone marks the bike-taxi app provider as the third startup to enter the unicorn club this year, following fintech firm Perfios and AI startup Krutrim.
Previously, Rapido raised $180 million in its Series D round in 2022, which included contributions from Swiggy and institutional investors such as WestBridge Capital and Nexus Venture Partners. At that time, the company was valued at $825 million, according to data from Tracxn.
Rapido Surpass Ola in Daily Rides – Report
Economic Times reports that Rapido is poised to secure an additional $20 million from global investors. The company has seen its revenue surge to Rs 497.5 crore for FY 2022-23, up from Rs 157.9 crore in the previous fiscal year. However, net losses have also widened to Rs 674.6 crore from Rs 439 crore.
Recent internal documents reveal that Rapido has surpassed Ola in daily rides, reaching 16.5 lakh rides per day as of March 2024, compared to Ola’s 13 lakh. Additionally, Rapido has transitioned from a commission-driven model to a software-as-a-service (SaaS) model for its auto driver partners, or Auto Captains, aiming for a lifetime zero commission structure.
A survey published by the Business Travel Show found that 58 percent of business travel buyers agree that alternative transport providers such as Rapido are a good option for business travel, a 32 percent increase from just two years ago.
The survey also found that the number of travel buyers who remain undecided on the benefits of shared economy suppliers has plummeted, from nearly half to a mere 17 percent.
