Rapido is an Indian bike-taxi aggregator. It announced Monday that it raised $52million in a fresh financing round. The six-year old startup seeks to compete in a market dominated in South Asia by Ola in India and Uber in South America.
Six-year-old startup received Series C funding from Shell Ventures and Yamaha. Kunal Shah, Positive Moves Consulting, Amarjit Singh Batra, Spotify India, Shell Ventures and Yamaha also funded it. The round also included existing investors Pawan Munjal from Hero Group, Westbridge and Nexus Venture Partners. It brings the total raised to $130 million.
Rapido offers its two-wheeler service in about 100 Indian cities. According to the startup, it now has over 15 million customers. It also claims 1.5 million drivers-partners it calls captains. The startup claims it has seen a 4X increase in the three-wheeler market in recent years. It says it operates in 26 cities and provides hyperlocal delivery.
The startup stated that its platform was affected by the coronavirus pandemic, which prompted India’s lockdown of several states. It has seen an already 85% recovery. Startup attributes its growth to India’s growing e-commerce market and the availability of hyperlocal delivery options.
Rapido co-founder Aravind Sanka stated that even though the product and model of Rapido are highly profitable and could generate exceptional revenues, the fundraising shows more investors’ trust in us than the need to capital.
According to him, the startup hopes that it will be able to service 50 million customers within the next 12 months. It plans to use capital to expand its technology platform — the startup is looking for strategic investments and to hire more employees.
Rapido’s growth is due to a change in India’s mobility market. In India, Uber and Ola have flooded over a million taxis within the last decade. Two-wheeler and three-wheeler are both more efficient in urban areas because they move faster and can be rented at a lower price.
In recent years, Ola and Uber expanded into two-wheeler as well as three-wheeler category. They also forged partnerships with companies like Vogo and Yulu. Ola is also expanding into the manufacturing of electric cars. It launched the Ola S1 electric scooter on Sunday. The price is 99,999 Indian Rupees or $1,350. On a full charge, the electric scooter can travel 121 km (75 miles).
Publiated Mon, 16 August 2021 at 07:47.03 +0000