Rapido, the prominent ride-hailing startup, has raised INR 250 crore (approximately USD 29.7 million) from global investment firm Prosus as part of its ongoing Series E funding round. This funding follows its earlier INR 1,000 crore (USD 120 million) investment led by WestBridge Capital in September 2024, bringing the total Series E funding to INR 1,650 crore (approximately USD 200 million). With this latest capital infusion, Prosus now holds a 2.9% stake in Rapido, reinforcing investor confidence in the company’s business model and growth trajectory.
Rapido’s Expansion Plans Post-Funding
The Bengaluru-based startup, which operates in over 120 cities, has ambitious plans to expand its footprint to 500 cities across India. According to regulatory filings, the raised capital will accelerate expansion efforts, strengthen its technology infrastructure, and enhance operational efficiency. The company aims to deepen its presence in Tier 2 and Tier 3 cities, a move that aligns with its long-term growth strategy.
Apart from its traditional bike taxi services, Rapido has also ventured into auto-rickshaws and cab aggregations, further intensifying competition with industry leaders like Ola and Uber. Additionally, the company has shown interest in entering the quick commerce logistics space, which presents significant growth opportunities.
Rapido IPO! – No Official Confirmation, But Signs Point Forward
In an interview conducted in September 2024, Rapido’s Co-founder and CEO, Aravinda Sanka, stated that the company had no immediate plans for an IPO. He emphasized that the primary focus remains on increasing penetration and expanding services before considering listing on the stock exchange.
However, recent funding trends indicate that Rapido may not require additional private capital beyond its Series E round. Historically, startups that secure late-stage funding rounds, particularly Series E, tend to transition towards an IPO rather than raising a Series F round. With Rapido’s valuation crossing the USD 1.1 billion mark and its financials showing positive momentum—46.3% YoY revenue growth and a 45% reduction in losses—it appears increasingly likely that the company may move towards an IPO soon.
Financial Performance and Growth Metrics
Rapido has demonstrated impressive financial performance, as indicated by its latest filings:
- Revenue Growth: Increased by 46.3% year-on-year to INR 648 crore in FY 2023-24.
- Loss Reduction: Losses declined by 45% to INR 371 crore in the same period.
- Gross Order Value (GOV): Recorded a 2.5x YoY jump, reaching INR 2,461 crore in Q2 FY25 from INR 977 crore in Q2 FY24.
- Ride Volume: The number of completed rides doubled to 207 million in Q2 FY25.
These figures reflect Rapido’s strong market positioning and efficient cost management, further reinforcing the possibility of Rapido IPO in the near term.
Future Outlook
Rapido is strategically aligning itself to capitalize on the growing mobility and quick commerce sectors in India. The company has also taken steps to improve sustainability by increasing electric vehicle (EV) penetration. In cities like Delhi, 25% of Rapido’s rides are already conducted via EVs, with plans to transition to a fully electric fleet in the coming years.
Moreover, Rapido recently announced its first Employee Stock Ownership Plan (ESOP) liquidation program, a move typically observed in companies preparing for public listing. This initiative allows current and former employees to benefit financially from the company’s success, further adding to speculation regarding an upcoming IPO.
Conclusion: Rapido IPO Could Be on the Horizon
While Rapido has publicly denied any immediate IPO plans, its Series E funding and overall market positioning suggest otherwise. The company has reached a stage where additional private funding rounds may not be necessary, and going public could provide the required capital for its ambitious expansion plans. Given the recent financial improvements, investor confidence, and the company’s market expansion strategy, an IPO in the next 12 to 18 months seems plausible.
For now, the company remains focused on strengthening its operations, expanding its reach, and driving profitability. However, investors and industry observers will be closely watching for any indications of an IPO announcement in the near future.
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