Rapido Secures ₹125 Crore Funding, Plans Entry into Food Delivery Market

Rapido, the app-based ride-hailing platform, has secured ₹125 crore in funding from Nexus Venture Partners, according to filings with the Registrar of Companies (RoC). “This investment is part of a broader funding round that values the company at $1.1 billion,” the company stated.

This latest capital infusion follows Rapido’s $200 million raise in the previous year, led by WestBridge Capital, and an additional $30 million from Prosus, a Dutch investor also backing Swiggy.

Rapido to Pilot Food Delivery in Bengaluru

Competitive Commission Strategy

Rapido is set to enter the food delivery segment with a pilot project launching later this month in Bengaluru. “The company has started onboarding restaurants and will run a pilot programme for the same in Bengaluru,” sources confirmed.

In a bid to lure restaurant partners, Rapido plans to offer commission rates between 8% to 15%, undercutting competitors Zomato and Swiggy, who charge between 16% to 30%.

FY25 Growth and Expansion Strategy

Nationwide Expansion into 500 Cities

Rapido’s diversification strategy appears to be paying off. In FY25, the company saw its gross order value (GOV) surge to $1.25 billion, doubling from the previous year thanks to the consistent performance of its ride-hailing operations.

What started as a bike-taxi service has now grown into a multi-modal platform offering autos and car rides, presenting an alternative to industry leaders Ola and Uber. Rapido now plans to extend its services to 500 more cities, intensifying the competitive landscape.

Financial Highlights: Steady Climb Toward Profitability

FY24 Revenue and Net Loss Reduction

Rapido reported notable financial improvements in FY24. “Operating revenue grew 46% year-on-year to ₹648 crore,” the company revealed. Simultaneously, it managed to cut its net loss by 45%, from ₹674 crore in FY23 to ₹371 crore, buoyed by broader service diversification and increased customer adoption.

Rapido History

Rapido is a prominent Indian ride-hailing service, primarily known as a bike taxi aggregator. Its history is a testament to identifying and addressing a specific market need in India's congested urban landscapes – quick, affordable, and efficient last-mile connectivity.

1. The Genesis: Identifying a Niche (2014-2015)

• Founders: Rapido was founded in 2015 by three individuals:

  • Aravind Sanka

  • Pavan Guntupalli

  • SR Rishikesh

  • They were all IIT or PESU alumni.

• Initial Idea - TheKarrier (2014): Before Rapido, the founders initially started a logistics company called "theKarrier" in 2014. While successful, it didn't achieve the rapid growth they envisioned.

• The "Aha!" Moment: The founders recognized that India's urban commuters faced significant challenges with traffic congestion and lacked efficient, affordable options for short distances. They saw the vast potential in India's two-wheeler market, with millions of bikes capable of navigating narrow streets and cutting through traffic much faster than cars or auto-rickshaws. This led them to the idea of a bike-taxi service.

• Launch in Bangalore (2015): Rapido officially launched its operations in 2015 in Bangalore, which was, and continues to be, a city known for its severe traffic. The initial service focused purely on bike taxis, providing a fast, cost-effective, and convenient alternative for commuters.

2. Early Growth and Expansion (2016-2019)

• Rapid Adoption: Rapido's unique offering quickly resonated with the Indian public. By the end of its first year, it had already gained over 1,000 registered "Captains" (the riders).

• Strategic Funding: Early on, Rapido attracted significant attention from investors who saw the potential in its model.

  • One of its earliest and most crucial backers was Pawan Munjal, Chairman of Hero MotoCorp, who invested in the company in 2016.

  • Through 2017, 2018, and 2019, Rapido raised multiple funding rounds (Series A, B, C) from investors like Nexus Venture Partners, WestBridge Capital, and Shunwei Capital, fueling its rapid expansion.

• Geographic Expansion: While initially focused on Bengaluru, Rapido aggressively expanded its presence. By 2019, it was operating in over 100 cities across India, including major metros like Delhi-NCR, leveraging its cost-effectiveness and speed to gain market share.

• Job Creation: Rapido also positioned itself as a significant job creator, providing flexible earning opportunities for thousands of bike owners across the country. By 2019, the company claimed to have created over 500,000 jobs.

3. Diversification and Unicorn Status (2020-Present)

• COVID-19 Impact and Diversification (2020): The COVID-19 pandemic severely impacted ride-hailing services. To adapt and survive, Rapido strategically expanded its operations into logistics and last-mile delivery services for local businesses and e-commerce companies. This move proved crucial in sustaining operations during lockdowns.

• Entry into Auto Rickshaws (October 2020): Recognizing another significant segment of Indian urban transport, Rapido launched its on-demand auto-rickshaw hailing services in October 2020, directly competing with Ola and Uber in this category.

• Significant Funding and Valuation (2022-2024):

  • In April 2022, Rapido received a substantial $180 million in a Series D funding round led by food delivery giant Swiggy, which significantly raised its valuation to $830 million.

  • A major milestone was achieved in September 2024 when Rapido became a unicorn (a privately held startup company valued at over $1 billion) after raising $200 million in a Series E funding round, valuing the company at $1.1 billion.

• Entry into Cab Hailing (2023): Demonstrating its ambition to be a full-fledged mobility platform, Rapido introduced taxicab hailing on its app in 2023, expanding its offerings beyond two-wheelers and auto-rickshaws.

• Continued Expansion and Strategic Moves (2025):

  • In February 2025, Rapido raised an additional ₹250 crore ($30 million) from Prosus, at the same unicorn valuation.

  • Rapido has announced plans to expand its services to 500 cities across India, starting in February 2025, from its current presence in around 120 cities.

  • In February 2025, Rapido also announced plans to launch women-only bike taxis ("Pink Bikes") in Karnataka, aiming to create 25,000 job opportunities for women and ensure safer commutes.

  • In June 2025, reports emerged that Rapido is set to enter the food delivery business with a pilot project, challenging established players like Zomato and Swiggy by offering lower commission rates to restaurants.

Challenges Faced:

Rapido's journey hasn't been without challenges. It has frequently encountered regulatory hurdles and legal troubles in various cities, particularly regarding the legality of bike taxis operating without specific permits from transport departments. Different states in India have varying regulations concerning bike taxis, leading to operational complexities.

Despite these challenges, Rapido has carved out a significant niche in the Indian ride-hailing market, leveraging its focus on affordability, speed, and last-mile connectivity. Its continuous diversification into autos, cabs, logistics, and now potentially food delivery, along with its aggressive expansion plans, positions it as a major player in India's dynamic mobility and delivery ecosystem.

Conclusion

Rapido’s recent ₹125 crore funding round, led by Nexus Venture Partners, marks a significant milestone in the company’s evolution from a ride-hailing startup to a diversified platform aiming to disrupt the food delivery ecosystem.

With a robust valuation of $1.1 billion and a strong financial performance in FY24—featuring a 46% year-on-year growth in operating revenue and a 45% reduction in net losses—the company is signaling its intent to scale sustainably. Rapido’s foray into the food delivery segment is a strategic move that leverages its existing mobility infrastructure, customer base, and brand recognition.

By offering restaurant partners a competitive commission rate between 8% to 15%, the company is directly targeting the pain points left by higher-fee incumbents like Swiggy and Zomato. Coupled with expansion plans into 500 additional cities, Rapido’s roadmap underscores an ambitious yet calculated approach focused on market penetration, profitability, and redefining convenience for users and partners alike.