Bike taxi service platform Rapido raises $52 million led by Shell, Yamaha, others

Bengaluru-based bike taxi service platform Rapido today said it has raised $52 million in a Series C funding round led by Shell Ventures and Yamaha India, bringing the company's total funding amount to over $130 million.

Cred founder Kunal Shah, and Amarjit Singh Batra, CEO of Spotify India and Positive Moves Consulting. Existing investors Pawan Munjal of Hero Group, Westbridge, Nexus Venture Partners, and Everblue Management also joined the round.

According to a statement, The raised capital will be used in making strategic investments in technology, people, and supply by the company.

Rapido provides a two-wheeler service in approximately 100 Indian cities. The startup claims to have over 15 million customers and 1.5 million captains, or driver-partners. In recent years, the startup has also expanded in the three-wheeler space, which it claims has grown 4X since last year in the 26 cities where it is currently operational, as well as hyperlocal delivery.

The startup claimed that its platform, which was hit by the coronavirus pandemic that forced India to impose lockdown in several states, has already recovered by 85 percent. The startup attributed its success to India's growing e-commerce and hyperlocal delivery opportunities.

“Even though our product and business model are lucrative and have the potential to churn out an exceptional revenue, this fundraising indicates more of the investors’ confidence in us than the need for capital,” said Aravind Sanka, co-founder of Rapido.

In the next 18 months, the startup hopes to serve 50 million customers. The startup also intends to invest capital in broadening its technology stack (via strategic investments) and hiring more people.

Rapido's growth coincides with a shift in India's mobility market, where Uber and Ola have flooded more than a million cabs in the last decade. Two-wheelers and three-wheelers have proven to be more effective in urban areas because they can move much faster through traffic and are less expensive.

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