Rapido Joins Unicorn Club, What's Next for the Ride-Hailing Startup?

In the fast-paced world of Indian ride-hailing, where giants like Ola and Uber battle for dominance, a new contender has emerged, ready to shake things up. Imagine a ride-hailing service that started with humble beginnings, zipping through the streets on two wheels, and has now evolved into a formidable player, commanding a valuation of over a billion dollars.

We are talking about none other than Rapido, the Bengaluru-based startup that has defied expectations, secured massive funding, and is now charging full speed ahead into the future.

But what fueled this meteoric rise? How did Rapido manage to capture the hearts and wallets of millions of riders across India? And more importantly, what does this unicorn status mean for the company and its ambitious plans? Buckle up, because we're about to take you on a thrilling ride through Rapido's journey, its recent funding triumph, and the exciting road that lies ahead.

Rapido turns into a Unicorn

Rapido has raised a substantial $200 million in a Series E funding round, led by existing investor WestBridge Capital. This significant investment has propelled Rapido's valuation to an impressive $1.1 billion, marking its entry into the coveted "unicorn club."

Rapido's Expansion Plan

• Major Funding Round: The Series E round saw participation from existing investor Nexus Venture Partners, as well as new backers Think Investments and New York-based Invus Opportunities. This significant capital infusion will bolster Rapido's expansion plans.

• Expanding Four-Wheeler Services: Aravind Sanka, Rapido's co-founder, stated that the funds will primarily be utilized to expand the company's recently launched four-wheeler taxi service. This strategic move positions Rapido to directly compete with established players like Ola and Uber in the cab-hailing market.

• Pan-India Expansion and Tech Upgrade: The investment will also enable Rapido to extend its operations across more cities in India, reaching a wider customer base. Additionally, it will fuel the enhancement of its technology platform, aiming to further improve service delivery and customer experience.

A Strong Foundation for Growth

• Impressive Recent Performance: Sanka emphasized the remarkable growth Rapido has achieved over the past two years, stating, "The latest fundraise comes on the back of strong growth we have clocked over the last two years." This consistent performance has solidified Rapido's position in the market.

• Robust Order Volume: Rapido currently processes a staggering 2.3 to 2.5 million orders daily across various vehicle types, including two-wheelers, three-wheelers, and now four-wheelers. A notable 7% of its operations stem from business-to-business (B2B) partnerships.

• Diverse Business Model: In the B2B space, Rapido fulfills food delivery orders for Swiggy during lean hours for its bike taxi services. Additionally, it has partnered with the Open Network for Digital Commerce (ONDC) as a logistics provider, demonstrating its versatility.

Rapido's Journey So Far

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido initially focused on bike taxi and auto-rickshaw transportation services. In December 2023, the company ventured into the cab services segment in select cities, further diversifying its offerings. It also operates a peer-to-peer delivery service called Rapido Local.

Rapido's net loss increased to INR 674.5 Cr in the fiscal year 2022-23, compared to INR 439 Cr in the previous year. However, its operating revenue saw a significant jump to INR 443 Cr from INR 144.8 Cr in FY22. This indicates strong growth potential but also highlights the challenges associated with rapid expansion.

What's Ahead for Rapido?

Rapido's latest funding round and unicorn status mark a significant milestone in its journey. With its sights set on expanding its four-wheeler taxi services, pan-India presence, and technological enhancements, Rapido is poised to continue its growth trajectory in the competitive Indian ride-hailing market. The company's diverse business model, strong order volume, and recent financial performance paint a picture of a promising future. However, navigating profitability while maintaining its rapid expansion will be crucial for its long-term success.

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