Indian ride-hailing startup Rapido said Friday it had raised $240 million in new funding at a $3 billion valuation as the company expands its position in India’s highly competitive mobility sector.
The equity funding round was led by Prosus and included participation from existing investors such as WestBridge Capital and Accel. The investment formed part of a broader $730 million primary and secondary financing transaction.
Rapido was previously valued at $2.3 billion during a secondary transaction last year.
The Bengaluru-based company said the newly raised capital will support expansion into high-growth markets, improvements to its driver network, and additional investments in technology and platform efficiency.
“We are going deeper into markets where demand exists, but supply remains fragmented,” Rapido co-founder Aravind Sanka said in a statement.
“We will sharpen our focus on strengthening supply, building technologies, and expanding our multimodal footprint, with far greater speed and intent,” he added.
Rapido Expands Across India’s Mobility Market
Founded in 2015, Rapido operates in more than 400 Indian cities.
The company initially gained traction by focusing on lower-cost transportation options such as motorbike taxis and auto-rickshaws, services that became popular in India’s congested and price-sensitive urban areas.
Rapido has also been increasing its presence in smaller towns as it broadens its geographic reach.
The company’s growth comes despite ongoing challenges across India’s ride-hailing industry, including pricing pressure, driver supply shortages, rising incentive costs, and shifting local regulations.
Investor interest in the sector has nevertheless remained active as companies compete for market share in one of the world’s largest transportation markets.
Competition With Uber And Local Rivals Continues
The funding announcement follows Uber CEO Dara Khosrowshahi’s recent visit to India, where Uber unveiled plans to expand its local engineering and infrastructure operations.
This week, Uber announced plans for two new technology campuses and a partnership involving a local data center.
Earlier this year, Uber also injected $330 million into its India subsidiary as competition increased against domestic rivals including Ola, Rapido, and Namma Yatri.
Khosrowshahi said last year that Rapido had surpassed Ola as Uber’s largest competitor in India.
Rapido has also expanded beyond ride-hailing services. Last year, the company entered the food delivery market through its subsidiary Ownly.
Featured image credits: Rapido
For more stories like it, click the +Follow button at the top of this page to follow us.