Fresh Capital Injection Strengthens Rapido’s Growth Ambitions
Mobility startup Rapido has secured Rs 250 crore (approximately $29.7 million) from Prosus as part of its ongoing Series E funding round. This latest investment follows a $120 million infusion led by WestBridge just seven months ago, reinforcing investor confidence in the company’s expansion strategy.
Details of the Fundraising Round
Regulatory filings accessed from the Registrar of Companies reveal that Rapido’s board approved the issuance of 47,743 Series E preference shares at an issue price of Rs 52,467 per share, raising Rs 250 crore. This aligns with earlier reports indicating that Prosus was set to invest roughly $60 million through a mix of primary and secondary funding.
The ride-hailing firm has been actively raising capital to fuel its growth. With this latest tranche, Rapido’s total Series E fundraising has reached $200 million, pushing its valuation to $1.1 billion.
Prosus’ Stake and Rapido’s Market Valuation
With this investment, Prosus now holds a 2.9% stake in Rapido. Based on Entrackr’s estimates, the company’s current valuation stands at approximately Rs 8,726 crore (just over $1 billion). This cements its position as one of India’s most valuable ride-hailing startups.
Strong Financial Performance and Operational Growth
Rapido has been on a steady growth trajectory. The company recorded a 46.3% year-on-year increase in revenue, reaching Rs 648 crore in the fiscal year ending March 2024. More importantly, it managed to cut losses by 45%, reducing them to Rs 371 crore during the same period.
Operationally, the company saw a sharp rise in demand. In Q2 FY25, Rapido reported:
- A 2.5X year-on-year increase in Gross Order Value (GOV), reaching Rs 2,461 crore compared to Rs 977 crore in Q2 FY24.
- A two-fold increase in total rides, hitting 207 million during the quarter.
Future Expansion and Competitive Landscape
Rapido’s latest funding round signals strong investor backing as it looks to further expand its services across India. The company has been aggressively competing with established ride-hailing giants, particularly in the bike-taxi and auto-rickshaw segments.
While regulatory challenges remain in certain states, Rapido continues to scale by leveraging strategic partnerships and optimizing operational efficiencies. With fresh capital in hand, the firm is expected to strengthen its market presence and explore new revenue streams in the highly competitive mobility sector.
Comments