Bike taxi startup Rapido has become the latest Indian startup to become a unicorn, reaching a valuation of $1 billion. The eight-year-old company has raised $120 million in a new funding round led by WestBridge Capital, according to a regulatory filing.
The fresh capital, Series E, underscores Rapido’s growing prominence in the Indian mobility sector, as it emerges as a formidable challenger to the long-standing duopoly of Uber and Ola. At the same time, it helps Swiggy take on rival Zomato in the fiercely competitive food delivery market.
Swiggy led Rapido's last round in April 2022, valuing the mobility startup at $800 million. Rapido has raised about $430 million so far.
Rapido has been able to overcome challenges that have hindered the growth of traditional taxi-hailing services in India by focusing on two-wheeler transportation rather than taxis, and has capitalized on the widespread use of motorcycles and scooters in India's congested urban areas.
Rapido did not respond to a request for comment.
In Rapido, Swiggy has found a delivery partner to help it handle the growing food delivery orders in the country. Rapido could provide more jobs to its drivers by partnering with Swiggy, according to a Rapido investor, who declined to be named for the strategy. Swiggy plans to eventually increase its stake in Rapido, but not before the IPO, according to a person familiar with the matter.
As previously reported by TechCrunch, Rapido is also in talks to raise funding from Malaysia's sovereign wealth fund Khazanah in the current round.
Swiggy has filed for an initial public offering (IPO) seeking to raise $1.25 billion at the event.
Rapido is the third Indian startup to become a unicorn this year, following fintech firm Perfios and AI startup Krutrim.
