Rapido has reached unicorn status after raising $120 million (around Rs 1,000 crore) in primary capital from WestBridge Capital. This latest funding round has elevated the ride-hailing platform’s valuation to $1 billion, based on regulatory filings.
This makes Rapido the third company to achieve unicorn status this year, following Perfios and Krutrim AI, founded by Bhavish Aggarwal. The year 2023 saw only two new unicorns, Zepto and InCred Wealth, indicating a tighter funding environment in the private financing markets.
Sources familiar with the situation indicate that Rapido, based in Bengaluru, is likely to secure an additional $20 million from international investors. A US-based family office and a UK-based fund are reportedly in talks to acquire stakes in the company.
Rapido was previously reported to be in discussions to raise a large funding round at a slightly higher valuation than its last. This new round, which is not yet fully closed, may also include a secondary component where early investors can exit their positions. The company was valued at $825 million after raising $180 million in April 2022.
Swiggy, a food delivery and quick commerce startup and an existing investor in Rapido, is not participating in this round. Having filed its IPO prospectus with Sebi, Swiggy has opted out of this investment round.
Founded in 2015 by Arvind Sanka, Pavan G, and Rishikesh SR, Rapido has raised $329 million in funding before this latest round. Other investors include Nexus Venture Partners and Integrated Capital. Despite a 54% increase in net loss to Rs 675 crore in FY23, Rapido’s operating revenue tripled to Rs 443 crore. The company has managed to reduce its monthly burn rate to around $2-3 million and aims for operational profitability by the end of FY25. Rapido plans to introduce high-margin revenue streams, such as in-app advertisements and value-added services for its driver partners. This fundraising comes amid regulatory challenges in key markets like Karnataka and Delhi.
