Rapido funding: Rapido turns unicorn post $120 million funding from WestBridge Capital

Ride-hailing platform Rapido has raised $120 million (about Rs 1,000 crore) in primary capital from its existing investor WestBridge Capital at a post-money valuation of $1 billion, becoming the newest unicorn startup in the country.Rapido is the third unicorn to be minted this year after Perfios and Ola founder Bhavish Aggarwal’s Krutrim AI turned unicorn earlier this year. In 2023, there were only two new unicorns—Zepto and InCred Wealth–underscoring the funding squeeze in private financing markets.

This marks a big bet from WestBridge Capital–which invests in public and private companies—on Rapido. According to people aware of the matter, the Bengaluru-based bike taxi company is likely to raise another $20 million from global investors.

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“A US-based family office and a UK-based fund are in talks to pick up stakes in the company,” a person aware of the matter said.

ET had reported on April 4 that Rapido was among late-stage firms engaged in discussions to raise a large round at a marginally higher valuation than its last fundraise. The new round, which is yet to be fully closed, could also see a secondary component being stitched up with some early investors exiting their positions. The Swiggy-backed company was last valued at $825 million after its $180 million funding in April 2022.

An email sent to Rapido did not elicit any immediate response.

Swiggy, an existing investor in Rapido, is not investing in this round, people aware of the matter said.

Rapido, similar to rivals like Ola and Uber, has rolled out subscription-based plans for auto-rickshaw drivers on their platforms instead of charging a booking fee or commission on every transaction. This is largely to take on Google-backed Namma Yatri, which doesn’t charge commissions from drivers. It has also forayed into offering cab-hailing services, essentially becoming a full-stack ride-hailing firm.

Started by Arvind Sanka, Pavan G and Rishikesh SR in 2015, Rapido has so far raised $329 million in funding. Nexus Venture Partners and Integrated Capital are among its other investors.