Indian ride-hailing unicorn Rapido is reportedly close to raising $60 million (INR 503 Cr) from Dutch investment firm Prosus, in a combination of primary and secondary share sales. This new capital will be part of Rapido’s ongoing $200 million round, sources revealed.
According to sources who spoke to Entrackr, the terms of the deal have already been finalised. “Prosus will acquire a $60 Mn stake in Rapido. The terms of the deal have been finalized, and it will also enable partial exits for early backers,” said one source. Another insider familiar with the development said that this $60 million round would mark the conclusion of Rapido’s Series E funding. Despite the investment, there are no expected changes to the company’s current valuation.
This development follows Rapido’s announcement last month that it had secured $200 million as part of its Series E round led by existing investor WestBridge Capital. That round propelled the Bengaluru-based startup into the unicorn club with a valuation of $1.1 billion.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido offers bike taxis, auto rides, and recently launched cab services in select cities. Additionally, the platform provides peer-to-peer delivery through Rapido Local. Over the years, the startup has attracted several high-profile investors, including Swiggy, TVS Motor Company, and Shell Ventures, raising over $625.75 million to date.
Despite its growth, Rapido has faced financial challenges. In the fiscal year 2022-23 (FY23), the company posted a net loss of INR 674.5 Cr, a 50% year-on-year increase. However, its operating revenue surged to INR 443 Cr, up from INR 144.8 Cr in FY22.
The new investment from Prosus comes at a time when the Dutch investor has been expanding its footprint in the Indian market. Recently, it was reported that Prosus is considering a $30 million secondary deal in hyperlocal services platform Urban Company, giving a partial exit to Bessemer Venture Partners. In August, Prosus participated in Bluestone’s INR 900 Cr pre-IPO round with a $350 Cr investment, further solidifying its commitment to India.
The investor is also looking forward to capitalizing on foodtech giant Swiggy’s upcoming IPO, where it plans to sell 11.8 Cr shares as part of the offer for sale (OFS) component.