Urban mobility platform Rapido is set to raise INR 125 crore (~USD 15 million) from Nexus Venture Partners. The investment is a part of Rapido’s Series E funding round which values the company at USD 1.1 billion (~INR 9,415 crore) and is part of its aggressive foray into India’s food delivery and fintech space.
According to the RoC filings, Rapido’s board has approved the issue of 23,872 Series E Compulsorily Convertible Preference Shares (CCPS) at a premium of INR 52,457 per share.
This is a continuation of Rapido’s fund raising momentum after it raised INR 250 crore from Prosus in February 2025 and USD 200 million (INR 1,712 crore) from WestBridge Capital in late 2024 which also included Nexus.
Food Delivery Expansion
The timing of the investment is interesting. Rapido is all set to launch its food delivery vertical this month and enter a space dominated by Zomato and Swiggy. According to reports, the company has started onboarding restaurants and will position itself as a cost effective alternative offering commission rates between 8% and 15% which is lower than the 16%–30% charged by existing platforms.
Rapido’s food delivery strategy seems to be designed to appeal to the restaurant community. Sources suggest a fixed fee per order model may also be on the table though this is unconfirmed. The pilot will roll out in Bengaluru first and a national strategy is being developed.
Foray into Fintech and Insurance
Rapido’s diversification isn’t limited to food. In a move that broadens its digital services portfolio, the company is in the process of establishing a fintech subsidiary. While details remain under wraps, early indications suggest offerings may include lending solutions and financial services targeted at both customers and its vast driver partner network.
Simultaneously, Rapido is reportedly exploring the insurance distribution space. The firm is eyeing products such as health, life, motor, and general insurance, again leveraging its existing ecosystem of riders and drivers.
Scaling Operations, Surging Metrics
Rapido’s transformation from a bike-taxi start-up into a full-fledged mobility and services platform is evident in its recent performance metrics:
- Gross Order Value (GOV) more than doubled in FY25, reaching USD 1.25 billion (~INR 10,700 crore), up from the previous year.
- The company now fulfills 3 to 3.5 million rides per day across its two-wheeler, auto-rickshaw, and four-wheeler ride-hailing services, and hyperlocal logistics verticals.
- On 24 May 2025, the company reported a milestone of 4 million rides in a single day.
Financially, the momentum is equally strong:
- Operating revenue rose by 46% YoY, reaching INR 648 crore in FY24.
- Net loss was reduced by 45%, from INR 674 crore in FY23 to INR 371 crore.
While the company’s monthly cash burn rose to an estimated INR 35–42 crore in FY25, this increase is attributed to the accelerated pace of expansion and new verticals under development.
Competitive Landscape and Outlook
With its rapid diversification and improved financial performance, Rapido is positioning itself as a serious contender to Ola and Uber in mobility, and now seeks to challenge the food delivery duopoly of Zomato and Swiggy.
Swiggy, notably, is also an investor in Rapido, holding a 12% stake, raising interesting dynamics as Rapido steps into its territory. Swiggy and Zomato shares fell ~2% on 10 June 2025, as the bike taxi aggregator began piloting a low-commission food delivery service in Bengaluru, threatening the duopoly. Offering 8–15% commissions, Rapido leverages its large rider fleet. Analysts warn of a potential 20% valuation hit if Rapido executes well.
The upcoming months will be pivotal. As Rapido pilots its food delivery and sets the stage for fintech and insurance, the company is expected to expand into 500 cities, significantly up from the 120 cities it operated in as of January 2025.
In an increasingly competitive digital economy, Rapido’s trajectory highlights a compelling narrative — one of ambitious scale, calculated risk, and multi-vertical disruption. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.