WestBridge led $120 M Series E funding raised by mobility startup Rapido

With a $120 million Series E funding round led by its largest backer, WestBridge Capital, which contributed money through three different investment vehicles, Swiggy-backed mobility startup Rapido has become a unicorn.

According to Rapido’s regulatory filings with the Registrar of Companies, the board of directors approved a special resolution to allot 10 equity shares, 95,479 Series E, and 95,489 Series E1 compulsory convertible preferred shares (CCPS) at an issue price of Rs 52,467 per share for a consideration of Rs 1,002 crore, or $120 million.

Based on the filings, WestBridge has invested the sum through the Setu AIF Trust, Konark Trust, and MMPL Trust.

The company raised the funding at a post-money valuation of Rs 8,517 crore, or slightly over $1 billion, based on estimates from the media.

In April 2022, Rapido completed a Series D funding round that raised $180 million. Reportedly, the company’s most recent valuation was approximately $850 million. Through multiple funding rounds, it has so far raised more than $300 million in total.

With a 26% stake in Rapido, Westbridge is the biggest shareholder. Notably, since Swiggy already filed a DRHP in preparation for a potential IPO, the company—of which it owns more than 15%—did not participate in the new round of funding.

Perfios and Krutrim SI Designs are currently unicorn-valued companies, and Leap, a lending firm, is about to raise a new round at unicorn valuation.

According to Rapido, it has surpassed Ola and surpassed Uber as the leading player in the ride-hailing market for bikes, cars, and taxis.

According to Rapido internal documents seen by the media, as of March 2024, Uber handled 19.3 lakh rides daily, while Rapido processed 16.5 lakh rides and Ola handled 13 lakh rides.

Rapido’s zero commission SaaS model, cash backs, and IPL spending seem to have been successful business moves for the company. According to its documentation, Rapido has become a national leader in the bike taxi industry and controls the southern portion of the nation’s auto-hailing market.

Although Rapido has not yet released its FY24 financials, in FY23 its operating revenue increased by 3X to Rs 443 crore. The sharp increase in scale was also responsible for a 54% increase in losses in FY23, totalling Rs 675 crore.