Bike-taxi startup Rapido has become the latest Indian startup to achieve unicorn status, reaching a valuation of $1 billion. The eight-year-old company secured $120 million in a Series E funding round led by WestBridge Capital, according to regulatory filings.
This new infusion of capital highlights Rapido’s growing influence in India’s mobility sector, where it is emerging as a significant competitor to the long-standing dominance of Uber and Ola. Additionally, Rapido’s growth is bolstering Swiggy’s position against rival Zomato in the highly competitive food delivery market.
Swiggy led Rapido’s previous funding round in April 2022, which valued the startup at $800 million. To date, Rapido has raised approximately $430 million.
Rapido’s focus on two-wheeler transportation, rather than traditional cabs, has enabled it to overcome challenges that have hampered the growth of conventional cab-hailing services in India. The startup has capitalized on the widespread use of motorcycles and scooters in the country’s congested urban centers.
Through its partnership with Swiggy, Rapido has become an essential delivery partner, helping to meet the growing demand for food delivery orders in India. This collaboration provides Rapido’s drivers with more work opportunities, according to an anonymous investor familiar with the strategy. Swiggy plans to increase its stake in Rapido eventually, but not before the company’s IPO, according to a person familiar with the matter.
