Creating waves in the mobility space of India, the Rapido has joined the unicorn club by attaining $120 million (approximately ₹1,002 crore) from the Series E funding round. The pre-office funding was done mostly by investors from WestBridge Capital, which is Rapido’s leading investor. The round was important for the company as it took the company over the $1 billion market capitalization point.
Information about the Funding Round
According to the provisions of the applicable laws, the board of Rapido sanctioned issuance of 10 shares of equity for ₹10 each – 95,478 Series E Compulsory Convertible Preferences Shares (CCPS) and 95,488 Series E1 CCPS at ₹52,467 each. The total fund mobilized in this round is ₹ 1,002 crore or USD 120 million, according to current exchange rates.
WestBridge Capital, which already held a significant stake in Rapido, contributed through three of its investment vehicles: Here the three trust named as Setu AIF Trust, Konark Trust, MMPL Trust. indicating the belief that the WestBridge has in the growth of Rapido. Currently, WestBridge controlling stake in the company is now 26% and became the company’s largest shareholder. Notably, the round did not involve Swiggy as the company holds more than 15% of Rapido’s stake and it is currently IPO bound.
With the headquarters in Bangalore, Rapido was started in the year 2015 by Arvind Sanka, Pavan G & Rishikesh SR The company is now a major player in mobility solutions in the country with its bike taxi services, auto rickshaw and cab services. It allowed Rapido to grow fast while giving its customers nice prices and was its unique zero-commission Software as a Service (SaaS) model.
Rapidly, within a short while, Rapido has taken its position among the Kenyan ride-hailing giants. Other reports have it that Rapido handled as many as 16. Daily rides of 5 lakh (165000) by march the year 2024 as second largest ride hailing service provider in India next to Uber. Unlike Uber, it processes 19. 3 lakh (1. 93 million) daily rides in comparison to another fierce competitor Ola which is providing 13 lakh (1. 3 million) daily rides.
Dominating the Bike Taxi Market
One of the biggest reasons for Rapido’s success can be considered its positioning within the market specifically within the bike taxi segment, and the company’s leaning towards the South area of the country. The company has also ventured well in auto-rickshaw segment thus increasing the service line of the company further. Their approach to the customer such as giving of cash back and promotion strategies such as the one exercised in the IPL sponsorships has endeared customers towards Rapido.
Nevertheless, the India-based successful business present …Rapido …still, now bike taxi service in any modes of key markets such as Karnataka or Delhi is falling under the legal issues. Nevertheless, the last funding round will add the necessary money which will allow the company to overcome these problems and expand across India.
Previous Funding and Growth
This latest funding round comes only a year after the Bengaluru-based Rapido closed its Series D funding round of $180 million in April this year. The stability seen in terms of investments shows the faith that investors have placed in Rapido’s business plan and prospects of the firm in the Indian market that is characterized by stiff rivalry.
The Future of Rapido
The funds of $120 million will enable Rapido to consolidate its operations in areas it is currently in as well as venture into new markets. This company’s strategy of catering for affordable and convenient mobility solutions for its clients shall remain its key drivers towards growth. Arvind Sanka, Pavan G, and Rishikesh SR the founders of Rapido plan to use this new funding to enhance the platform’s technological aspect and diversify the variety of services provided to consumers.
With time, Rapido is still young and is bound to expand thus making it one of the crucial players to keep an eye on in the Indian mobility market. The firm has developed a new approach to conducting business in symbiosity with investors’ support and focusing on customer satisfaction, which ensures it delivery success in upcoming years.
Thus, Rapido attaining the unicorn status is one more success story of the company’s growth and development pointing to the fact that it can influence the future of urban mobility in India.
