India’s Rapido Reaches Unicorn Status Following a $120 Million Investment Surge

The bike-taxi enterprise Rapido has ascended to unicorn status, achieving a valuation of $1 billion. This milestone comes as part of a Series E funding round where it secured $120 million, led by WestBridge Capital, disclosed via a regulatory filing.

This recent financial injection highlights Rapido’s escalating significance in the Indian transit market, positioning it as a vital competitor against Uber and Ola’s dominance. Moreover, it plays a crucial role in bolstering Swiggy’s position in the intense battle with Zomato in the food delivery realm.

Previously, in April 2022, Swiggy spearheaded Rapido’s funding round, placing the company’s valuation at $800 million. To this day, Rapido has amassed around $430 million in funding.

Opting to focus on motorbike-based transit, Rapido distinguishes itself from traditional cab services, effectively leveraging India’s dense urban landscape and the prevalent motorcycle and scooter usage to its advantage.

Attempts to obtain a comment from Rapido went unanswered.

For Swiggy, Rapido has emerged as a pivotal ally enhancing its capacity to fulfill the surging demand for food delivery within the nation. This collaboration has offered greater job opportunities for Rapido’s drivers, as noted by an investor of Rapido, who preferred to remain unnamed while discussing company strategies. Furthermore, there are plans for Swiggy to augment its investment in Rapido, aiming for a substantial stake ahead of the latter’s public listing, revealed by an informed source.

Rapido also considered funding from Khazanah, Malaysia’s sovereign fund, in this latest funding cycle, as previously reported by TechCrunch.

In its stride towards expansion, Swiggy has initiated the process for an initial public offering (IPO), with an aim to garner $1.25 billion.

Following fintech company Perfios and AI innovator Krutrim, Rapido stands as the third Indian entity to claim unicorn status within the year.