Ride-hailing platform Rapido has raised $240 million in a fresh funding round, propelling its post-money valuation to $3 billion and bolstering its reserves to take on larger rivals Uber and Ola.
The round was led by Prosus and included participation from WestBridge Capital, Accel and other investors, as part of a $730 million primary and secondary financing.
Rapido said it aims to address gaps in affordable transport and flexible employment as demand accelerates in Tier-II cities and beyond. The new capital will be used to scale the company’s operations in “high-growth regions” while continuing to expand its core services in Tier-I metros.
“At Rapido, we’ve always believed that the true measure of mobility is not only the rides completed but also livelihoods created. This investment is about accelerating our ability to unlock both structurally,” said Aravind Sanka, the company’s cofounder. “We are going deeper into markets where demand exists but supply remains fragmented. We will sharpen our focus on strengthening supply, building technologies, and expanding our multi-modal footprint, with far greater speed and intent.”
Ashutosh Sharma, head of India ecosystem at Prosus, said mobility is becoming the “foundational layer” of India’s digital economy. “Our investment reflects a strong conviction in Rapido’s ability to scale sustainably while addressing real, large-scale challenges around access and livelihoods,” said Sharma.
“Rapido’s focus on affordability, efficiency and driver empowerment continues to resonate strongly with consumers. We are pleased to continue backing the team as they scale their platform and unlock the next phase of growth,” said Sumir Chadha, cofounder and managing partner at WestBridge Capital.
Rapido has “demonstrated a remarkable ability to organise both demand and supply across highly fragmented markets, underpinned by a scalable, technology-driven marketplace,” said Abhinav Chaturvedi, partner at Accel.
Rapido, which was founded in 2015, operates in more than 400 Indian cities where its services include bike taxis, autorickshaws, cabs, parcel delivery and food delivery.
Uber, Rapido’s larger rival, is betting big on India. Uber Chief Executive Officer Dara Khosrowshahi said the company will partner with the Adani Group to set up its first data centre in India, deepening its technology and infrastructure investments. Khosrowshahi once called Rapido Uber’s toughest competitor in India — ahead of the better-known Ola.
India is Uber’s third-largest market globally by trip volume, behind only the United States and Brazil. Sources said earlier that Uber plans to expand its bike taxi business in smaller cities.