Kamal Ghorui
MUMBAI: Rapido, which rivals Uber and Ola in India’s ride-hailing market, has raised a fresh $240 million in funding led by Dutch technology investor Prosus at a valuation of $3 billion, higher than its last valuation of $2.3 billion it attained when Swiggy sold its stake in the startup in a secondary transaction in September last year. The investment is part of a broader $730 million funding round which includes a mix of primary and secondary transactions and has now been closed. WestBridge Capital and Accel also backed the $240 million funding tranche which has been done by way of fresh capital infusion (primary investment). In a secondary transaction, the shares of a company change hands among investors and no money gets added to the firm’s coffers. Besides food delivery competitor Swiggy, early investor TVS Motor Company also fully exited the startup as part of the secondary transaction which has been in the works for months.The total investment marks one of the largest funding rounds raised by a startup in recent times in a market where big capital has been scarce to come by except for a few deals like that of quick commerce player Zepto’s which last bagged a $450 million pre-IPO funding in October 2025, adding to its billion dollar fundraising spree since 2024 and recently AI startup Neysa which saw Blackstone lead a $1.2 billion investment in the firm through a mix of equity and debt financing. Rapido has raised $700 million in primary funding in all since its inception in 2015. The Bengaluru-based startup turned unicorn in July 2024 after bagging $120 million funding from WestBridge Capital at a valuation of $1 billion. The announcement comes amid Uber CEO Dara Khosrowshahi’s India visit, a market he had once said is one of the toughest. Rapido is fast gaining market share and is understood to have raced past Uber and Ola in terms of monthly active users between January and February this year. In a statement on Friday, Rapido said that it will use the funds to expand to new markets and broaden its footprint in existing ones besides growing its network of drivers, investing in technology and people. “This investment comes at a time when demand across tier 2+ markets is accelerating even as Rapido continues to deepen its mobility offering in tier 1 cities,” the company said, adding that there is scope for the firm to create access to affordable mobility and flexible earnings opportunities.India’s ride-hailing market is shifting from premium to utility, widening scope for players like Rapido. “Incremental trips are no longer being led by premium cab formats or metro-heavy demand. Instead, the expansion engine now sits firmly in autos and two-wheelers, particularly across non-metro markets,” market research firm RedSeer said in a report. Rapido has also forayed into the food delivery space with its brand Ownly that is operational only in Bengaluru as of now.
