MUMBAI: Rapido, which competes with Uber and Ola in India's ride-hailing market, has raised $240 million in a fresh funding round led by Dutch technology investor Prosus at a valuation of $3 billion. This valuation is higher than the $2.3 billion it achieved when Swiggy sold its stake in the startup in a secondary transaction in September last year.
Funding Details
The investment is part of a larger $730 million funding round that includes both primary and secondary transactions and has now been closed. WestBridge Capital and Accel also participated in the $240 million tranche, which was executed through fresh capital infusion (primary investment). In a secondary transaction, shares of the company change hands among investors, and no money is added to the firm's coffers. Besides Swiggy, which is a food delivery competitor, early investor TVS Motor Company also fully exited the startup as part of the secondary transaction that had been in the works for months.
Significance of the Round
This total investment marks one of the largest funding rounds raised by a startup in recent times in a market where large capital has been scarce, except for a few deals such as quick commerce player Zepto's $450 million pre-IPO funding in October 2025 and AI startup Neysa's $1.2 billion investment led by Blackstone. Since its inception in 2015, Rapido has raised $700 million in primary funding. The Bengaluru-based startup became a unicorn in July 2024 after securing $120 million from WestBridge Capital at a valuation of $1 billion.
Market Position and Expansion Plans
The announcement comes during Uber CEO Dara Khosrowshahi's visit to India, a market he once described as one of the toughest. Rapido is rapidly gaining market share and is understood to have surpassed Uber and Ola in terms of monthly active users between January and February this year. In a statement on Friday, Rapido said it will use the funds to expand to new markets, broaden its footprint in existing ones, grow its network of drivers, and invest in technology and people.
"This investment comes at a time when demand across tier 2+ markets is accelerating even as Rapido continues to deepen its mobility offering in tier 1 cities," the company said, adding that there is scope for the firm to create access to affordable mobility and flexible earnings opportunities.
Industry Context
India's ride-hailing market is shifting from premium to utility, widening the scope for players like Rapido. "Incremental trips are no longer being led by premium cab formats or metro-heavy demand. Instead, the expansion engine now sits firmly in autos and two-wheelers, particularly across non-metro markets," market research firm RedSeer said in a report. Rapido has also ventured into food delivery with its brand Ownly, which is currently operational only in Bengaluru.
