India-based ride-hailing startup Rapido achieves unicorn status after securing an additional $120 million in funding.

Table of Contents

Introduction

In a significant milestone for the Indian startup ecosystem, Rapido, an 8-year-old bike-taxi platform, has reached unicorn status after raising $120 million in a new funding round led by WestBridge Capital. This latest infusion of capital values the mobility startup at over $1 billion, marking a major achievement for Rapido as it continues to challenge the dominance of Uber and Ola in India’s transportation sector.

Background on Rapido

Rapido was founded in 2015 with the goal of providing affordable and convenient two-wheeler transportation services to commuters in Indian cities. The startup has since grown rapidly, with a strong presence in over 100 cities across the country. By focusing on two-wheeler transportation, Rapido has been able to navigate the challenges that have hindered the growth of traditional cab-hailing services in India, including high operating costs and regulatory hurdles.

Funding Round and Valuation

The latest funding round, which is a Series E infusion, brings Rapido’s total funding to over $430 million. The investment values the startup at over $1 billion, making it one of the most valuable startups in India. WestBridge Capital led the funding round, with participation from existing investors, including Swiggy.

Strategic Partnership with Swiggy

Rapido’s partnership with Swiggy is a key factor behind its growth and success. The two companies have tied up to provide food delivery services in Indian cities, leveraging Rapido’s strong network of drivers and Swiggy’s extensive restaurant partnerships. This strategic partnership has helped both companies grow their business and reach new customers.

Impact on India’s Mobility Sector

Rapido’s rise to unicorn status is a testament to the growing importance of mobility startups in India. As the country continues to urbanize, there is a growing need for efficient and affordable transportation services. Rapido’s focus on two-wheeler transportation has helped it tap into this demand, providing commuters with a convenient and affordable option.

Competitors and Market Share

While Uber and Ola continue to dominate the cab-hailing market in India, Rapido has emerged as a formidable challenger. With its strong network of drivers and efficient operations, Rapido is well-positioned to capture a significant share of the market. The startup’s partnership with Swiggy also gives it an edge over its competitors.

Future Plans and Growth Prospects

Rapido plans to use the latest funding round to expand its operations in India and explore new markets. The company is expected to continue growing rapidly, driven by increasing demand for mobility services and the success of its strategic partnership with Swiggy.

Conclusion

Rapido’s achievement of unicorn status is a significant milestone for the Indian startup ecosystem. As one of the most valuable startups in the country, Rapido is well-positioned to make a lasting impact on India’s transportation sector. With its strong network of drivers and efficient operations, Rapido is poised to continue growing rapidly and challenging the dominance of Uber and Ola.

Additional Information

Rapido’s Key Statistics:
- Founded in 2015
- Valuation: over $1 billion
- Funding raised: over $430 million
- Cities served: over 100 cities across India
WestBridge Capital: A leading private equity firm with a strong track record of investing in Indian startups.
Swiggy: A popular food delivery platform that has partnered with Rapido to provide mobility services.