Bengaluru-based ride-hailing startup Rapido is gearing up for another significant investment, with Dutch investment firm Prosus reportedly ready to inject $60 million into the company. This latest development comes as part of Rapido’s ongoing $200 million Series E funding round, further cementing its position as a major player in India’s competitive mobility sector.
Prosus Joins the Ride: Details of the Investment
Sources close to the deal have revealed that Prosus is set to acquire a $60 million stake in Rapido through a mix of primary and secondary share sales. This move not only brings fresh capital to the startup but also provides an opportunity for early backers to secure partial exits.
“Prosus will acquire a $60 million stake in Rapido. The terms of the deal have been finalized, and it will also enable partial exits for early backers,” an anonymous source disclosed to Entrackr.
Maintaining Unicorn Status
Despite the new influx of capital, Rapido’s valuation is expected to remain unchanged. The company recently achieved unicorn status with a valuation of approximately $1.02 billion, following the initial tranche of its Series E round led by WestBridge Capital.
Rapido’s Growth Trajectory
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido has quickly become a prominent name in India’s mobility landscape. The company offers a range of services including:
1. Bike taxis
2. Auto rides
3. Cab services (in select cities)
4. Peer-to-peer delivery through Rapido Local
Financial Performance and Challenges
While Rapido has shown impressive growth, it has also faced its share of financial hurdles:
– FY23 net loss: INR 674.5 Cr (50% year-on-year increase)
– FY23 operating revenue: INR 443 Cr (up from INR 144.8 Cr in FY22)
Despite the widening losses, the substantial revenue growth indicates strong market traction and user adoption.
Prosus: Expanding Its Indian Footprint
This investment in Rapido aligns with Prosus’s broader strategy of increasing its presence in the Indian market. Recent moves by the Dutch investment firm include:
– Considering a $30 million secondary deal in Urban Company
– Participating in Bluestone’s INR 900 Cr pre-IPO round with a $350 Cr investment
– Planning to capitalize on Swiggy’s upcoming IPO by selling 11.8 Cr shares in the offer for sale (OFS) component
Rapido’s Market Position
Sources suggest that Rapido has surpassed competitors Ola and Uber to become the largest player in the overall ride-hailing space, covering bikes, autos, and cabs. This claim, based on Rapido’s internal documents, underscores the company’s growing influence in the sector.
Conclusion
As Rapido prepares to conclude its Series E funding round with this $60 million investment from Prosus, the startup appears well-positioned to continue its rapid growth in the Indian mobility market. With its diverse service offerings and strong financial backing, Rapido is poised to further disrupt the ride-hailing industry and potentially expand into new territories. As the mobility sector evolves, all eyes will be on Rapido to see how it leverages this fresh capital to drive innovation and capture an even larger market share.
