Mobility startup Rapido has raised $200 million in a funding round led by WestBridge Capital, propelling its valuation to $1.1 billion and earning a spot in the unicorn club. The funds will be used to expand Rapido’s four-wheeler taxi service, which competes directly with market leaders like Ola and Uber. Existing investors Nexus Venture Partners and new investors, including Think Investments and Invus Opportunities, participated in the round. Rapido is also venturing into the quick commerce delivery space, utilizing its two-wheeler fleet for hyperlocal deliveries.
Rapido, co-founded by Aravind Sanka, is rapidly expanding across various vehicle categories. The company, originally focused on two-wheelers, has now made significant progress in three-wheelers and four-wheelers, clocking 2.3-2.5 million orders daily, with 7% coming from B2B services. Rapido has partnered with Open Network for Digital Commerce (ONDC) as a logistics provider and plans to deepen its presence in cities while expanding its vehicle categories. The startup aims to grow its four-wheeler cab service using a subscription model rather than charging commissions to driver partners.
Rapido’s strategic moves have driven its gross merchandise value (GMV) past the $1 billion mark, with three-wheeler auto-rickshaws contributing 40% of the GMV, while bike-taxis and cabs contribute 30% each. Despite strong competition from established players like Uber, Ola, and newer entrants like Namma Yatri, Rapido continues to expand its market share, particularly in the auto-rickshaw and four-wheeler segments.
Rapido also plans to enter the quick commerce market, aligning with the growing demand for rapid deliveries. The company is exploring partnerships with e-commerce and quick commerce firms to facilitate faster delivery times, ranging from 10-minute to one-hour windows. With a fleet of over 600,000 active riders, Rapido aims to leverage its scale to compete with established quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto. The quick commerce sector in India, valued at $2.8 billion in 2023, is expected to grow to $22 billion by 2027, offering significant opportunities for Rapido’s expansion plans.