Rapido, a leading mobility startup, has successfully secured $200 million in a funding round spearheaded by WestBridge Capital, solidifying its position among India’s unicorn startups with a new valuation of $1.1 billion.The Bengaluru-based company, which originally began as a two-wheeler bike-taxi service, has expanded into new sectors, including three-wheeler and four-wheeler ride-sharing. Co-founder and CEO, Aravind Sanka, stated that this capital injection would fuel the company’s expansion into hyperlocal and quick commerce deliveries. He also highlighted Rapido’s ambitious plans to further penetrate the four-wheeler market.
Rapido’s daily operations have now reached a staggering 2.3-2.5 million orders, with approximately 7% of those coming from B2B services, including food deliveries for Swiggy during non-peak hours for bike-taxis. The company has also joined hands with the Open Network for Digital Commerce (ONDC) to provide logistics solutions.
Over the last year, Rapido’s growth trajectory has been exponential, with the company experiencing a significant rise in its gross merchandise value (GMV) driven by diversification into autos and cabs across 100+ cities. In fact, auto-rickshaw bookings now contribute around 40% to the GMV, followed by bike-taxis and cabs, each contributing 30%.
Amidst growing competition from industry giants like Uber, Ola, and the emerging Namma Yatri, Rapido remains focused on its expansion strategy. The company is particularly keen on bolstering its four-wheeler cab services through a unique subscription model that ensures fair earnings for its driver partners by eliminating commission-based fees.
Additionally, Rapido is eyeing the rapidly growing quick-commerce sector. With a fleet of over 600,000 active two-wheeler riders, the company is exploring partnerships to enhance delivery times for ecommerce and quick commerce firms.
According to Sanka, the quick commerce industry in India is poised for exponential growth, and Rapido aims to leverage its extensive rider base to carve a niche in this sector.
The $200 million funding will not only propel Rapido’s ambitious expansion plans but also bolster its ability to compete with both established and emerging players in India’s highly competitive mobility and logistics space.