- Indian bike-taxi startup Rapido has achieved unicorn status, reaching a $1 billion valuation following a $120 million funding round led by WestBridge Capital.
- Rapido’s achievement of unicorn status underscores a significant shift in India’s startup ecosystem, marking it as the third Indian company to reach this milestone in 2024, following fintech Perfios and AI startup Krutrim.
OUR TAKE
Rapido’s rise to unicorn status is like the ultimate Indian underdog story. They’re taking on the big guns like Uber and Ola with their two-wheeler game, showing that nimble and agile can beat out the big, bulky cabs. And partnering with Swiggy? That’s like having the coolest kid in school as your BFF. But hey, I’ll admit, I’m a bit skeptical about Swiggy’s plan to increase their stake post-IPO. It feels like they’re trying to have their cake and eat it too. But who knows, maybe this is just the start of an epic tech bromance we’ll all be talking about for years to come.
–Miurio huang, BTW reporter
What happened
Indian bike-taxi startup Rapido has achieved unicorn status, reaching a $1 billion valuation following a $120 million funding round led by WestBridge Capital. This latest Series E round highlights Rapido’s growing influence in India’s mobility sector, where it challenges the entrenched dominance of Uber and Ola. The eight-year-old company, which has now raised approximately $430 million, is also playing a key role in supporting Swiggy’s competitive edge in the food delivery market.
Rapido’s unique focus on two-wheeler transportation—motorcycles and scooters—has allowed it to navigate the challenges faced by traditional cab-hailing services in India’s congested cities. This strategic positioning has helped the company thrive in an environment where motorbikes are more suited to urban traffic conditions.
Swiggy, which led Rapido’s previous funding round in April 2022, valuing the company at $800 million, continues to be a significant partner. Through its association with Rapido, Swiggy has enhanced its delivery capabilities, creating additional opportunities for Rapido’s drivers. Swiggy is reportedly planning to increase its stake in Rapido, although this move will likely follow Rapido’s initial public offering (IPO).
Additionally, Rapido engaged with Khazanah Nasional, Malaysia’s sovereign wealth fund, as part of the current funding round. Rapido’s successful fundraising and strategic partnerships come at a time when Swiggy is preparing for its own IPO, aiming to raise $1.25 billion.
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Why it’s important
Rapido’s achievement of unicorn status underscores a significant shift in India’s startup ecosystem, marking it as the third Indian company to reach this milestone in 2024, following fintech Perfios and AI startup Krutrim. The new valuation and funding reflect the increasing investor confidence in alternative mobility solutions, especially those addressing the unique challenges of Indian urban transportation.
The funding round not only strengthens Rapido’s position but also signals a broader trend of consolidation and strategic partnerships within the Indian tech and mobility sectors. Rapido’s collaboration with Swiggy highlights the growing intersection of mobility and delivery services, demonstrating how companies are leveraging synergies to enhance operational efficiencies and market reach.
the involvement of Khazanah Nasional and the upcoming IPO for Swiggy add layers of international investment and financial maneuvering to the narrative, reinforcing the significance of Rapido’s market presence. This development marks a pivotal moment in India’s tech landscape, showcasing the rapid evolution and global interest in innovative transportation solutions.
