Indian ride-hailing company Rapido announced on Friday that it had secured $240 million in new funding, valuing the company at $3 billion, to enhance its position in India’s expanding yet demanding mobility market.
The equity round was led by Prosus, with participation from existing investors including WestBridge Capital and Accel. This funding is part of a larger $730 million primary and secondary financing. Last year, Rapido was valued at $2.3 billion during a secondary transaction.
Rapido plans to use the new capital to expand its presence in high-growth markets, bolster its driver network, and invest in technology and platform efficiency.
“We are going deeper into markets where demand exists, but supply remains fragmented,” said Rapido co-founder Aravind Sanka. “We will sharpen our focus on strengthening supply, building technologies, and expanding our multi-modal footprint, with far greater speed and intent.”
The funding highlights ongoing investor interest in India’s mobility sector despite challenges related to pricing, regulation, and profitability.
Founded in 2015, Rapido operates in over 400 cities and has driven growth by offering ride-hailing for lower-cost and flexible modes of transport like motorbikes and autorickshaws in India’s congested, price-sensitive cities. The Bengaluru-based startup is also reaching out to smaller towns.
This funding follows Uber CEO Dara Khosrowshahi’s visit to India. The ride-hailing giant recently announced plans to expand its engineering and infrastructure operations through two new technology campuses and a local data center partnership. Earlier this year, Uber invested $330 million into its India subsidiary to enhance its position amid increasing competition from local companies like Ola, Rapido, and Namma Yatri.
Khosrowshahi stated last year that Rapido had surpassed Ola as Uber’s biggest competitor in India.
India’s ride-hailing market is currently among the world’s most challenging due to intense price competition, supply issues, high driver incentive costs, and evolving local regulations. Nevertheless, Rapido has quickly increased its market share and even ventured into the food delivery business through its subsidiary Ownly last year.