Indian ride-hailing firm Rapido stated on Friday it had raised $240 million in recent funding at a $3 billion valuation to compete higher within the nation’s rising however difficult mobility market.
Led by Prosus, the fairness spherical noticed participation from present traders, together with WestBridge Capital and Accel. The spherical was half of a bigger $730 million main and secondary financing. Rapido was beforehand valued at $2.3 billion throughout a secondary transaction final yr.
Rapido stated the recent capital can be used to extend its footprint in high-growth markets, strengthen its driver community, and put money into know-how and platform effectivity.
“We’re going deeper into markets the place demand exists, however provide stays fragmented,” Rapido co-founder Aravind Sanka stated in a press release. “We are going to sharpen our concentrate on strengthening provide, constructing applied sciences, and increasing our multi-modal footprint, with far higher velocity and intent.”
The funding spherical underlines persevering with investor curiosity in India’s mobility sector regardless of persistent considerations about pricing pressures, regulation, and profitability.
Based in 2015, Rapido operates in additional than 400 cities, and has spurred its development by enabling ride-hailing for lower-cost and extra versatile modes of transport equivalent to motorbikes and autorickshaws in India’s congested, price-sensitive cities. The Bengaluru-based startup has been increasing to smaller cities, too.
The funding comes within the wake of Uber CEO Dara Khosrowshahi’s go to to India, the place the ride-hailing big this week unveiled plans to expand its engineering and infrastructure operations by way of two new know-how campuses and a neighborhood knowledge middle partnership. Uber earlier this yr infused $330 million into its India subsidiary because it sought to strengthen its presence amid rising competitors from native rivals like Ola, Rapido, and Namma Yatri.
Khosrowshahi stated final yr that Rapido had overtaken Ola as Uber’s largest competitor within the nation.
India is at the moment one of many world’s most difficult ride-hailing markets due to intense value competitors, provide points, excessive driver incentive prices and evolving native rules. However, Rapido has quickly expanded its market share, even entering the food delivery business by its subsidiary Ownly final yr.
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