
Rapido, a bike taxi service, has revealed that it has raised $120 million in a new investment round led by WestBridge Capital, propelling it into the unicorn club in India.
The money represents a component of Rapido’s Series E round, according to media sources that reference regulatory documents. According to The Economic Times, Rapido anticipates raising an additional $20 million from international investors.
Rivalling Uber and Ola, Rapido last raised $180 million in a Series D fundraising round in 2022, which was spearheaded by the massive food delivery company Swiggy.
The business said in a statement that TVS Motor business, a manufacturer of two-wheelers, as well as current investors Westbridge, Shell Ventures, and Nexus Ventures, contributed to the round.
The last time Rapido raised $52 million was in August 2021, from investors that included Positive Moves Consulting, Shell Ventures, Yamaha, CRED founder Kunal Shah, and Spotify India CEO Amarjit Singh Batra.
Rapido became the fourth Indian company to reach $1 billion in valuation this year after Teachers’ Venture Growth invested $80 million in fintech startup Perfios, which collects data to help financial institutions make lending decisions.
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Separately, in January, Bhavish Aggarwal, the creator of Ola, founded the AI business Krutrim, which raised $50 million in its first investment round at a $1 billion valuation, making it the first unicorn of 2024.
Media sources state that in May, Porter, an on-demand logistics business, acquired capital from friends and family in a round that propelled the company into India’s unicorn club.
India has welcomed four firms into its unicorn club in 2024, up from just two in 2023, although this is still a long way from the exuberant years of 2021–2022.
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The number of unicorns created has been drastically decreasing year, with just 24 private firms surpassing the $1 billion barrier in 2022, compared to a record 45 in 2021. This decline can be attributed to a number of factors, such as tighter global monetary policy, increased inflation, and a slowing global Economy.
The rush to join the unicorn club appears to have subsided as valuations have stabilised.
Venture growth investor Iron Pillar estimated that by 2025, there will be over 250 unicorns in India in a research from 2022. Based on present trends, the aim appears to be nearly unreachable.
About Rapido
Rapido is an Indian ride-hailing service that functions mostly as an intermediary for bike taxis. Its services also include parcel delivery, third-party logistics, and the ability to hail auto rickshaws and taxis.