Rapido looks to raise $50M in fresh funding round

rapido funding

Rapido is all set to raise $50 million in a fresh round from new and existing investors, three sources knowledgeable of the deal revealed.

“Rapido has already raised $30 million from WestBridge while $20 million more has been committed by new and existing investors including Nexus Venture Partners and Motherson,” stated one of the sources quoted above urging anonymity.

The recent funds for the five-year-old company have come after a break of 20 months. The startup had earlier raised $55 million in its Series B round led by WestBridge Capital in August 2019.

The latest capital infusion will enable the Bengaluru-based company to organize its operations and get ahead of its competitors like Ola Bike and Uber Moto. Currently, Rapido offers bike taxis service in nearly 100 cities and has succeeded to get satisfactory traction in smaller cities. It recently rolled out an hourly rental service in six major cities.

Apart from bike taxis, it has also ventured into on-demand auto hailing service in December. Rapido has been facilitating last-mile delivery for e-commerce companies for around two years.

“The round is almost certain and likely to be announced anytime soon,” said the second source who also requested anonymity as talks are private. “Sound unit economics is one of the primary drivers for existing investors to double down their stakes in Rapido.”

Even though the company recorded a loss of Rs 243.6 crore during FY20, its topline rose 10X to Rs 106.5 crore during the period. Comparatively, its revenue was significantly better than most of the growth-stage startups of its age.

Excluding this new round, Rapido has raised more than $75 million in two institutional rounds. The company had also facilitated exits to its early backers, including angels, during its last fundraise. 

In a recent interview, Rapido claimed to have achieved around 75% of its pre-Covid volume. However, with the lockdown and curfew restrictions in cities such as Delhi, Mumbai, and Bengaluru, its business is likely to be disrupted again.

Rapido is quickly becoming popular in Tier II and III cities. After the proposed funding round, the company will be able to greatly expand its business.

Shishir Gupta, Founder and CEO, StartupLanes

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