Urban mobility startup Rapido has raised $240 million in fresh capital in a round led by Dutch technology investor Prosus, valuing the company at $3 billion, it said in a statement on Friday. WestBridge Capital and Accel also participated in the round. The fundraise is part of a larger $730 million financing that Rapido is finalising, comprising both primary and secondary components.
The transaction, which has been in the works for over the past six months, was announced during the India visit of Dara Khosrowshahi, chief executive of Uber, Rapido’s biggest rival in India. Uber had infused $330 million into its India unit in February. During a town hall at Uber’s Bengaluru office on Thursday, Khosrowshahi discussed the company’s growing focus on India’s two-wheeler market, Rapido’s strongest segment.
Rapido said the capital will be deployed to “expand demand by creating new markets and deepening existing ones, grow the captain network and expand earning opportunities at scale, and invest in the technology and people that power both.” This includes deepening its footprint in high-growth markets and strengthening first- and last-mile connectivity.
ET had reported in September that the round was being discussed at a $3 billion valuation, and later in March that the US-based Accel Leaders Fund was expected to join the transaction.
Prosus and Accel India have also acquired a stake in Rapido from food and grocery delivery firm Swiggy, which owned about 12% of the bike-taxi startup, in a secondary deal valued at around $270 million.
Once completed, the financing will rank among the largest fundraises by a consumer internet startup in India over the past year. It also comes as Rapido’s food delivery service, Ownly, moves beyond pilot testing and prepares for a formal launch in Bengaluru later this month.
“At Rapido, we’ve always believed that the true measure of mobility is not only the rides completed, but also the livelihoods created. This investment is about accelerating our ability to unlock both at scale,” said Aravind Sanka, founder and chief executive of Rapido.
Founded in 2015 by Sanka, Pavan Guntupalli and Rishikesh SR, Rapido operates in more than 400 cities. The company recently launched Ownly in Bengaluru as it looks to challenge the Zomato-Swiggy duopoly in food delivery.
“We are going deeper into markets where demand exists but supply remains fragmented, building the density that gives captains reliable and predictable earnings. We will sharpen our focus on strengthening supply, building technologies, and expanding our multi-modal footprint with far greater speed and intent,” Sanka added.
Rapido’s operating revenue rose 44% year-on-year to Rs 934 crore in fiscal year 2025. The Bengaluru-based company reported a net loss of Rs 258 crore for FY25, down 30% from the previous financial year.
The improvement was driven largely by stronger operating leverage. Rapido’s Ebitda loss narrowed sharply to Rs 104 crore in FY25 from Rs 409 crore in FY24.
According to industry executives, Rapido commands an estimated 50% aggregated market share across bikes, auto rickshaws and four-wheeler cabs.
The Bengaluru-headquartered startup initially built its dominance in bike taxis, which typically see higher ride volumes. In recent years, however, it has also made significant inroads into the four-wheeler cab-hailing segment.
Beyond bike taxis, which operate on a commission-based model, Rapido also offers three-wheeler and four-wheeler ride-hailing services through a subscription model, under which auto-rickshaw and cab drivers pay a fixed subscription fee to access ride demand on the platform.
