The round, being led by Dutch technology investor Prosus, will value Rapido at around $3 billion. ET had reported about this larger fundraise in September.
Along with the two investors, Accel’s India outfit is also participating in the transaction, which includes both primary and secondary components. Prosus and Accel India have also picked up stake in Rapido from food and grocery delivery firm Swiggy, which owned 12% of the bike taxi startup. Rapido’s existing backer WestBridge Capital is also investing in this round.
Once closed, the overall financing will be among the largest raised by a consumer internet startup in the country over the past year, and comes at a time when Rapido’s food delivery service Ownly is moving beyond pilot testing and being formally launched in Bengaluru this month.
In January, the Competition Commission of India approved Prosus’s proposed investment in Rapido.
Rapido and Accel did not respond to ET’s queries till the time of publication. The Accel Leaders Fund has previously backed used-car sales platform Spinny, where it co-led a $160-170 million round with crossover investor Fidelity Investments.
Founded in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR, Rapido has rapidly scaled up its mobility business and is increasingly challenging incumbents Uber and Ola, after years of duopoly in India’s ride-hailing market.
According to a note by BofA Global Research citing Sensor Tower data, Rapido had between 70-80 million monthly active users in February, compared with nearly 40 million for Uber and less than 30 million for Ola.
Rapido is estimated to command about 50% market share on an aggregated basis across different vehicle formats, including bikes, autorickshaws, and four-wheeler cabs, according to industry executives.
The Bengaluru-headquartered startup initially built its dominance in bike taxis, which typically see higher ride volumes. However, it has recently made significant inroads in the four-wheeler cab-hailing segment as well.
Beyond bike taxis, which Rapido operates on a commission-based model, the company also offers three-wheeler and four-wheeler ride-hailing services through a subscription model. Here, drivers operating auto-rickshaws and cabs pay a subscription fee for a fixed duration to access ride demand on the platform.
The subscription-based approach was first introduced by ONDC-linked platform Namma Yatri and later adopted at scale by Rapido. The model eventually prompted both Uber and Ola to roll out similar offerings to retain driver supply on their platforms.
Rapido is now attempting to replicate its momentum in mobility by entering the food delivery segment, currently dominated by Swiggy and Zomato.
Financially too, the company has improved. Rapido’s operating revenue for the financial year ended March 2025 rose 44% to Rs 934 crore, while its losses narrowed significantly.