Rapido has raised $240 million in a fresh funding round, taking its valuation to $3 billion. The investment was led by Prosus, with participation from existing investors WestBridge Capital and Accel. The funding marks a major milestone for the Bengaluru-based company as it continues to expand its presence in ride-hailing, logistics, and food delivery.
The latest round highlights the growing confidence investors have in Rapido’s business model. Over the years, the company has grown from a bike-taxi startup into one of India’s largest mobility platforms. It is now preparing for its next phase of growth, which could eventually lead to an initial public offering (IPO).
Fresh Funding Boosts Rapido’s Growth Plans
The new investment has significantly increased Rapido’s valuation, which now stands at $3 billion. This is a sharp jump from its earlier valuation and reflects the company’s rapid growth in recent years. Since its launch in 2015, Rapido has raised more than $700 million through primary funding rounds.
The deal also included secondary share transactions, allowing some early investors to sell their stakes. One of the biggest exits came from Swiggy, which sold its entire holding in Rapido. The move reportedly generated strong returns for the food delivery company.
TVS Motor Company also exited its investment in Rapido. The shares sold by these investors were acquired by existing and new investors participating in the funding round.
Industry observers believe the exits were influenced by Rapido’s growing focus on food delivery, which places it in direct competition with some of its former strategic investors.
The fresh capital is expected to help Rapido expand its services, strengthen technology capabilities, and support future growth initiatives.
Revenue Grows While Losses Continue to Fall
Rapido reported strong financial performance in FY25. The company’s operating revenue increased to ₹934 crore, while its total income crossed the ₹1,000 crore mark after including income from investments and other sources.
At the same time, Rapido reduced its losses considerably. Net losses fell by more than 30% compared to the previous year, showing that the company is moving closer to profitability.
One of the biggest changes in FY25 was the growth of its delivery business. Revenue from food and parcel deliveries became the company’s largest revenue stream, overtaking passenger ride services for the first time.
Rapido has also seen strong growth in subscription income. Instead of charging drivers a commission on every ride, the company has introduced a subscription-based model for many of its auto and cab drivers. Under this system, drivers pay a fixed access fee and keep most of their earnings.
According to the company, this approach has helped improve driver retention and reduce customer acquisition costs. It has also contributed to better operating efficiency and stronger financial performance.
While driver incentives remain the company’s largest expense, Rapido has managed to improve its overall cost structure and reduce operating losses significantly.
Food Delivery Expansion and IPO Plans
Rapido is now expanding beyond transportation through its food delivery platform, Ownly. The service operates on a zero-commission model, allowing restaurants to keep more of their earnings. Customers pay a fixed delivery charge, making pricing more transparent.
The platform has already onboarded thousands of restaurant partners in Bengaluru and is processing a growing number of daily orders. To accelerate expansion, Rapido has partnered with Magicpin, giving it access to a large restaurant network across multiple cities.
The company’s entry into food delivery adds a new growth opportunity and increases competition in the sector.
At the same time, Rapido continues to strengthen its position in ride-hailing. The platform has expanded rapidly across bike taxis, auto-rickshaws, and cab services, helping it compete more effectively with established players such as Uber and Ola.
Looking ahead, Rapido is also preparing for a potential IPO. Company executives have indicated that preparations could begin by late 2026 or early 2027.
The company is also investing heavily in electric mobility. It plans to increase the number of electric vehicles on its platform and support the transition to cleaner transportation options in major cities.
Although regulatory challenges around bike-taxi operations remain in some states, Rapido’s strong growth, improving financial performance, and expanding business model have placed it in a strong position for the future. With fresh funding in hand, the company is now aiming to become a leading mobility and delivery platform in India.