Rapido goes past $1 billion GMV mark
Rapido, which started as a bike-taxi platform, has crossed gross merchandise value (GMV) of $1 billion, according to people aware of the matter, driven by its expansion into segments such as cabs and auto-rickshaws and an aggressive expansion into more than a 100 cities.
This also marks the emergence of a significant third player in the ride-hailing business–after Uber and Ola–which has remained largely stagnant after the pandemic.
Rapido has recorded more than three times growth since FY23, when it was clocking a GMV of about $300 million. It is also present in the parcel pick-up-and-drop segment.
Last month, the Bengaluru-based company raised $120 million from existing investor WestBridge Capital, entering the unicorn club with a valuation of $1 billion. Over the last few years, in addition to expanding into new categories, Rapido has also added new revenue streams, such as advertising and support services for its driver partners.
While the funding is expected to fuel the Swiggy-backed company’s expansion plan, its journey is unlikely to be without speed bumps.
What the latest funding has shown is also the big bet WestBridge Capital is placing on the nine-year-old firm. “WestBridge cutting a $120-million cheque indicates that growth and expansion won’t be mindless and there is a sustainable plan,” said a person aware of the dynamics, requesting not to be named. “That’s how the fund backs its winners and doubles down on them after executing at a scale. This is a clear big bet from the fund on Rapido.”
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