Mobility unicorn Rapido is poised to raise $60 million in a combination of primary and secondary capital from Prosus, according to sources familiar with the transaction. This funding round is part of Rapido’s ongoing $200 million Series E round, which had previously seen WestBridge Capital lead the initial tranche of $120 million in August 2023.
Sources indicate that “Prosus will acquire a $60 million stake in Rapido. The terms of the deal have been finalized, allowing for partial exits for some of the company’s early backers.” With this investment, Rapido is set to successfully close its Series E funding round.
Despite this new capital influx, sources confirm that Rapido’s valuation will remain stable at approximately $1.02 billion, a figure established during the first tranche of the Series E round funded by WestBridge through entities like SETU AIF and Konark. Queries sent to both Rapido and Prosus have yet to receive responses.
Prosus, which currently holds the largest stake in food delivery giant Swiggy, is expanding its interest in the mobility sector. In November 2022, Swiggy acquired over a 12% stake in Rapido after leading its $180 million funding round, reflecting Prosus’s ongoing confidence in the ride-hailing firm.
This investment arrives as Rapido reportedly surpasses Ola and Uber to become the largest player in India’s ride-hailing sector, which encompasses bikes, autos, and cabs, according to internal documents reviewed by Entrackr.
While Rapido has not yet disclosed its financial performance for FY24, the company’s operating revenue tripled to ₹443 crore in FY23. However, this rapid growth has also resulted in increased operational challenges, with losses rising by 54% to ₹675 crore in the same fiscal year.
Key Highlights:
- Funding Round: Rapido is set to raise $60 million from Prosus as part of a larger $200 million Series E funding round.
- Stable Valuation: Despite new investments, Rapido’s valuation remains at approximately $1.02 billion, unchanged since the first tranche of the Series E round.
- Market Leadership: Rapido has reportedly surpassed Ola and Uber to become the largest player in India’s ride-hailing market, which includes various vehicle types.