Rapido turns unicorn after $120 million Series E round led by WestBridge: Reports

Swiggy-backed mobility startup Rapido has achieved unicorn status following a successful $120 million Series E funding round led by its major investor, WestBridge Capital, Entrackr reported, quoting regulatory filings with the Registrar of Companies. The investment was made through three different investment vehicles: Setu AIF Trust, Konark Trust, and MMPL Trust.

According to regulatory filings with the Registrar of Companies, Rapido's board has approved the issuance of 10 equity shares, 95,479 Series E shares, and 95,489 Series E1 compulsory convertible preferred shares (CCPS) at an issue price of Rs 52,467 per share, totaling Rs 1,002 crore (approximately $120 million).

Entrackr estimates that this funding round values Rapido at over Rs 8,517 crore, or slightly more than $1 billion. This valuation marks a significant increase from the company's previous valuation of around $850 million reported by startup data intelligence platform TheKredible following a $180 million Series D funding round in April 2022. To date, Rapido has raised more than $300 million across multiple funding rounds.

WestBridge Capital remains Rapido's largest stakeholder, holding a 26 per cent share. Notably, Swiggy, which owns over 15 per cent of Rapido, did not participate in this funding round due to its focus on filing a Draft Red Herring Prospectus (DRHP) for a potential IPO.

In the ride-hailing sector, Rapido has surpassed Ola, emerging as the second-largest player after Uber. According to Rapido’s internal documents, as of March 2024, Uber processed 19.3 lakh rides daily, Rapido conducted 16.5 lakh rides, and Ola registered 13 lakh rides, the report added.

Rapido's success is attributed to its zero-commission model, cash-back offers, and substantial spending on IPL promotions. The company has positioned itself as a leader in the bike taxi sector and dominates the auto-hailing segment in southern India.

While Rapido has not yet disclosed its financial results for FY24, its operating revenue for FY23 surged threefold to Rs 443 crore. However, this growth came with a 54 per cent increase in losses, which stood at Rs 675 crore for the fiscal year.

Rapido has not yet responded to queries sent for additional comment.