Westbridge to lead Rapido’s funding plan with $70 mn
Ride-sharing aggregator Rapido, backed by the likes of Swiggy and TVS Motor, is in the process of securing a $100 million, led by early backer Westbridge Capital, said a person in the know, seeking anonymity.
“Rapido has received commitments of around $70 million, and is approaching domestic family offices for additional capital,” he added.
Currently, the company is in talks that might lead to a ‘flat round’ of funding, potentially valuing the firm at $900 million, said a second person also requesting anonymity. In April 2022, Rapido raised $180 million from Swiggy at a valuation of around $830 million.
The firm continues to purse investors to infuse capital despite the bike sharing segment facing regulatory challenges, and opposition from traditional service providers, such as auto drivers in Karnataka, which revoked permission for electric bike taxis in March.
A Westbridge spokesperson declined to comment. Westbridge had invested in Rapido, operated by Roppen Transportation Services Pvt. Ltd, as early as 2019 and participated in funding rounds in 2021 and 2022. “It (Westbridge) is our existing investor and invested in every round. They will keep supporting us in future as well, whenever we raise,” Aravind
Sanka, Rapido cofounder said. The firm is well capitalised and “closer to cash flow positive”, Sanka added.
Rapido, that started as a bike taxi aggregator in 2015, diversified into three-wheeler and four-wheeler ride-sharing in October.
Sanka’s emphasis on pursuing profitability reflects a broader shift in the startup ecosystem away from the previous focus on growth at any cost—a trend that dominated 2021. This pivot comes as startups closer to profitability stand a better chance at wooing investors and securing favourable valuations.
Rapido‘s losses widened to around ₹675 crore in 2022-23 from ₹439 crore a year earlier. However, a spokesperson said: “We wish to clarify that Rapido is adequately capitalized and not looking to raise funds in near future. Any discussion is purely speculative.”
In April 2022, Rapido raised $180 million from Swiggy at a valuation of around $830 million