Bike taxi platform Rapido has raised $180 million (over INR 1,370 crores) in a Series D funding round led by Swiggy. TVS Motor Company, along with existing investors Westbridge, Shell Ventures and Nexus Ventures have also participated in the funding round. The round values the startup at $830 Mn.
Rapido will use the funds to strengthen its technology, amplify and boost teams across diverse sets of capabilities, and increase overall supply to create an enhanced consumer experience across a larger audience base in metros, tier I, II and III cities.
It will also be investing these funds in all its three categories — bike-taxi, auto and delivery — to enhance its drive partners’ earnings and improve customer experience in over 100 cities where it operates.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido claims to have a presence in more than 100 Indian cities with more than 15 Mn customers and 25 Mn app downloads to date. The startup offers bike taxis, auto services and peer-to-peer delivery services for essentials.
Rapido has been heavily affected by the pandemic and following lockdowns that made it enter the delivery of the P2P essential for food and medicines offered through Rapido Local.
Rapido, which used to dominate India’s short commuting and bike taxi space, is now facing some serious heat from Ola and Uber as they expanded their wings into the bike taxi space.
Rapido, which initially used to dominate the bike taxi space in the country, now faces challenges from Ola and Uber as they have also forayed into bike taxis.
Aravind Sanka, Co-founder of Rapido, said, “We look forward to learning from Swiggy’s experience to scale up throughout the country and enhance our captains’ (driver-partners) / customers’ experience, who are the backbone of our business.”
“TVS Motor, who are very passionate about EVs and the future of mobility, will help us in further expansion. We hope to accelerate our pace of becoming a household name as we increase our geographies and services, on the backbone of our robust, global-standard technology,” Arvind further added.
Sriharsha Majety, Co-founder and CEO of Swiggy, said, “Swiggy and Rapido share a vision to build a logistics platform that empowers riders through more opportunities and higher earnings. While we’ve already been working together, this investment facilitates closer alignment to leverage the synergies between the platforms and improve the value we provide to both consumers and delivery executives/captains across the country.”