Indian ride-hailing platform Rapido has raised $240 million in a funding round led by Prosus, taking its post-money valuation to $3 billion amid intensifying competition in India’s mobility market. Existing investors, including WestBridge Capital and Accel, also participated in the round, The Economic Times reported.
The funding is part of a larger $730 million primary and secondary transaction. Rapido said the fresh capital will be used to expand into new markets, strengthen its driver network, improve technology infrastructure, and grow its presence in smaller cities where demand for low-cost transport is rising.
What Rapido and Prosus said: “At Rapido, we’ve always believed that the true measure of mobility is not only the rides completed but also livelihoods created,” Rapido co-founder Aravind Sanka said. “We are going deeper into markets where demand exists, but supply remains fragmented.”
Prosus said the investment reflects its long-term bet on India’s digital economy and mobility sector. “Mobility is emerging as a foundational layer of India’s digital economy,” said Ashutosh Sharma, Head of India Ecosystem at Prosus.
Rapido’s expansion beyond bike taxis: Founded in 2015, Rapido started with bike taxis and later expanded into auto-rickshaws, cab services, parcel delivery, and food delivery. The company now operates in more than 400 cities and focuses heavily on Tier-II and Tier-III markets, where affordable transport options remain limited.
The company has also been diversifying beyond ride-hailing. In 2025, Rapido set up separate entities for food delivery, financial services, and pooling services. Its food delivery platform, Ownly, is positioned as a low-cost alternative in a market dominated by Zomato and Swiggy.
Competition in India’s ride-hailing market: The fundraise comes amid aggressive competition. Uber recently invested about $330 million in its India business and is expanding its bike taxi operations. Uber CEO Dara Khosrowshahi earlier described Rapido as Uber’s biggest rival in India, ahead of Ola.
Earlier this year, the Competition Commission of India approved Prosus’ plan to increase its stake in Rapido after Swiggy exited its roughly 12% holding in the company. Rapido’s valuation had risen to around $2.3 billion during the 2025 secondary transaction. The company has also indicated that it plans to prepare for an IPO by the end of 2026.
Rapido follows a subscription-based model for auto and cab drivers, unlike the commission-based model used by Uber and Ola. The company has also partnered with Magicpin to expand into food and grocery delivery.
Financial performance: The company’s financial performance improved in FY25. Operating revenue rose 44% to Rs 934 crore, while net loss narrowed nearly 30% to Rs 258 crore, indicating improving operating leverage even as the broader ride-hailing sector continues to face pressure from pricing battles, driver…
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