Rapido raises $240 million at $3 billion valuation

Indian ride-hailing company Rapido announced on Friday that it has raised $240 million in fresh funding. The equity round, led by Prosus, valued the startup at $3 billion. Existing investors, including WestBridge Capital and Accel, also participated in the round. The transaction is part of a larger $730 million primary and secondary financing, building on the company’s previous valuation of $2.3 billion during a secondary transaction last year.

To break down the transaction:

• Fresh funding: Rapido secured $240 million in new capital to increase its footprint in markets, strengthen its driver network, and invest in technology and platform efficiency.
• Total financing: The broader $730 million transaction includes both primary and secondary financing, which represents a mix of new capital issuance and the purchase of existing shares from current shareholders.

Founded in 2015, the company operates in more than 400 cities in India. Rapido has focused its growth on enabling ride-hailing for lower-cost modes of transport such as motorbikes and auto-rickshaws in cities. The startup plans to use the fresh capital to expand its multimodal footprint—meaning its presence across these various transport modes—and to strengthen its driver network.

According to Rapido co-founder Aravind Sanka, the company plans to target areas with fragmented supply. “We will sharpen our focus on strengthening supply, building technologies, and expanding our multimodal footprint, with far greater speed and intent,” Sanka said in a statement. He added that the company intends to go deeper into markets where demand exists but supply remains fragmented.

The funding comes amid intense competition in the country’s mobility market. Rapido’s primary rival, Uber, infused $330 million into its India subsidiary earlier this year. The investment coincided with a visit to India this week by Uber CEO Dara Khosrowshahi. Uber has sought to strengthen its presence in the country amid growing competition from local rivals like Ola, Rapido, and Namma Yatri. Khosrowshahi previously noted that Rapido had overtaken Ola as Uber’s biggest competitor in the country. To capture more of the market, Rapido has also expanded into food delivery through its subsidiary Ownly.

Why it matters

The funding round underlines continuing investor interest in India’s mobility sector despite persistent concerns about pricing pressures, regulation, and profitability.