"Rapido Joins the Unicorn Club: A New Era in India's Ride-Hailing and Delivery Market"
Image: rapido Bike Taxi
Image courtesy: Entrackr
Rapido, a popular ride-hailing startup from Hyderabad, has reached an impressive milestone by becoming a unicorn—meaning it's now valued at over $1 billion.
This achievement came after securing around $120 million (₹1,000 crore) in a recent Series E funding round led by its existing investor, WestBridge Capital, as revealed in filings with the Registrar of Companies (RoC).
This blog explores Rapido's journey, its recent funding round, and its plans for expansion, positioning it as a key player in India's competitive market.
Introduction
Rapido, a ride-hailing startup, has reached a significant milestone by joining the unicorn club, thanks to a $120 million (Rs 1,000 crore) Series E funding round led by WestBridge Capital.
This new funding is set to propel Rapido's expansion and technological advancements, positioning it as a formidable competitor in India's ride-hailing and delivery market.
Funding and Expansion
Rapido's recent funding round has brought substantial financial backing, enabling the company to extend its auto and cab services to new cities across India.
A venture capital investor, who wished to remain anonymous, highlighted the strategic importance of this funding: "The new funding will help them develop their tech stack and expand in the newer markets which was previously dominated by Ola and Uber."
Rapido's Journey and Offerings
Image: Aravind Sanka, Pavan Guntupalli, and Rishikesh SR
Image courtesy: Business India
Founded in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR, Rapido started as an auto and bike taxi aggregator.
Over the years, it has diversified into cab services and recently ventured into the hyper-local parcel delivery market. This expansion strategy aims to enhance its service offerings beyond just auto and bike taxis.
Previous Investments and Growth
In April 2022, Rapido raised $180 million in a Series D round led by Swiggy, with participation from TVS Motor Company, WestBridge, Shell Ventures, and Nexus Ventures.
This substantial investment laid the groundwork for Rapido's recent growth and its current unicorn status.
The Unicorn Club and India's Startup Ecosystem
Rapido's entry into the unicorn club is part of a broader trend of rising valuations in India's startup ecosystem. After a slow period in 2022 and 2023, the market is witnessing a resurgence.
Moneycontrol reported, Raise Financial Services, the company behind the investing and trading app Dhan, is in talks to raise around $100 million, which would boost its valuation to $1.2-1.5 billion. Similarly, Porter, a logistics company, recently reached a valuation of $1 billion after a friends and family funding round.
Other notable startups reaching unicorn status this year include Bhavish Aggarwal's Krutrim and Perfios, underscoring the dynamic growth and potential within the Indian startup landscape.
Rapido's achievement of unicorn status marks a new chapter in its journey, showcasing its potential to disrupt and innovate within the ride-hailing and delivery services sector.
With substantial new funding, Rapido is poised to enhance its technological capabilities and expand its market presence, offering robust competition to established players like Ola and Uber.
As India's startup ecosystem continues to thrive, Rapido's success story serves as an inspiration and a testament to the growing opportunities within the industry.