Ride-hailing company Rapido is set to raise INR 125 crore from US-based venture capital firm Nexus Ventures as it looks to chart its entry into the food delivery space and set up a fintech unit.
According to documents filed with the Registrar of Companies (RoC), Rapido’s board has approved a plan to raise funds by issuing 23,872 Series E preference shares.
Each share has a face value of Rs 10 but will be sold at a much higher price of Rs 52,467 per share. In total, this will generate approximately INR 125.2 crore.
Rapido last raised INR 250 crore in February this year from global tech investor Prosus.
Before that, in September of last year, the company raised $200 million from investors such as WestBridge Capital and Nexus Venture Partners, achieving a unicorn valuation (valued at over $1 billion).
Rapido’s new funding arrives at a crucial time, as the company plans to expand beyond its core ride-hailing business.
It is now looking to enter the food delivery market, which is currently dominated by major players such as Zomato and Swiggy.
According to several reports, the Bengaluru-based company has started adding restaurants to its platform. It plans to charge much lower commission fees than other food delivery companies.
Rapido is also planning to expand its ride-hailing services to 500 cities, competing with Uber, Ola, and Namma Yatri. As of January this year, the company was active in about 120 cities.
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