Ola, Uber rival Rapido raises $200 million to expand operations across the country

Ride-hailing startup Rapido, which competes with giants—Ola and Uber, has raised $200 million in a Series E funding round at a valuation of $1.1 billion.

The round was led by WestBridge Capital, which infused $120 million, with additional investments from Think Investments, Nexus Venture Partners, and Invus Group.

Becoming a unicorn startup

Last month, it was reported that WestBridge’s $120 million investment helped push Rapido into the unicorn startup club.

Prior to the ride-hailing firm, Perfios and Bhavish Aggarwal's AI startup Krutrim AI joined the unicorn startup club. Notably, Krutrim is India's first AI unicorn startup.

Expanding cabs services

Rapido plans to use the newly raised capital to scale operations across the country and expand its four-wheeler ride-hailing services, which it launched in December last year.

The startup initially rolled out this service in three cities—Delhi, Bengaluru, and Hyderabad.

Although the cab segment is largely dominated by Uber and Ola, the latest investment will help Aravind Sanka-led firm compete more effectively with these industry giants.

“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," Sanka said.

Rapido funding and investors

Prior to the current round, Rapido raised $180 million in April 2022 in a Series D round led by foodtech major Swiggy, with participation from TVS Motor Company and existing investors Westbridge, Shell Ventures, and Nexus Ventures.

So far, the startup has raised over $500 million in funding from investors. According to CrunchBase, it acquired two companies, Getbike in 2018 and Vahananlytics in 2019.

Rapido was founded in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.

Since then, the ride-hailing firm has extended its reach beyond metro cities, establishing a presence in over 100 cities, including tier 2 and 3 cities nationwide.

Investor comments

Sumir Chadha, co-founder and Managing Partner at WestBridge Capital, said, “In the five years since the initial investment made 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."

"We congratulate the team on their capital-efficient scaleup, which now positions Rapido amongst India's most used consumer internet apps. This latest funding round underscores our ongoing commitment to their journey," Chadha added.