Rapido, a prominent player in the ride-hailing industry, has achieved a significant milestone in its growth journey by securing a substantial investment of USD 120 million. This latest funding round, classified as a Series E investment, was spearheaded by WestBridge Capital, a longstanding supporter and existing investor in the company. The injection of capital has propelled Rapido’s valuation to an impressive USD 1 billion, officially inducting it into the exclusive club of unicorn startups – a term reserved for privately held companies valued at USD 1 billion or more.
This information came to light through regulatory filings submitted by Rapido, which were subsequently obtained and analyzed by Tofler, a respected market intelligence platform. When approached for comment on this development, Rapido’s representatives chose to maintain their silence, neither confirming nor denying the reports.
The achievement of unicorn status by Rapido is particularly noteworthy as it marks only the third such occurrence in the current year. The two preceding companies to attain this prestigious designation were Krutrim, an artificial intelligence venture founded by Bhavish Aggarwal, and Perfios, a business-to-business (B2B) Software-as-a-Service (SaaS) company operating in the financial technology sector.
This recent funding success for Rapido comes against the backdrop of a challenging period for the startup ecosystem. For more than a year, the industry has grappled with a noticeable slowdown in investment activity. However, the tide appears to be turning, with several high-value deals once again emerging on the horizon. This resurgence in funding is exemplified by quick commerce startup Zepto, which earlier this year managed to secure a staggering USD 665 million from investors – the largest funding round witnessed so far this year. Similarly, companies like Purplle have also succeeded in attracting significant investments, with over USD 100 million raised from various backers.
The startup landscape in India is poised for further growth and development, buoyed by recent policy initiatives. Notably, the government’s budget proposal to abolish the angel tax is expected to have a positive impact on the funding ecosystem. This move is anticipated to encourage more investments in early-stage startups by removing a significant tax burden on angel investors, thereby potentially stimulating increased funding activity across the entire startup spectrum.
As the startup industry continues to evolve and adapt to changing economic conditions, success stories like Rapido’s serve as a beacon of hope and inspiration for other emerging companies. The ability to secure substantial funding and achieve unicorn status, especially during a period of overall funding deceleration, underscores the resilience and potential of innovative startups in the Indian entrepreneurial landscape.