Ride hailing platform Rapido has raised $240 million in a fresh primary funding round led by Prosus, with participation from WestBridge Capital, Accel and other existing investors.
According to the company, the investment is part of a broader $730 million primary and secondary transaction that values Rapido at approximately $3 billion on a post-money basis.
The fresh capital will be used to expand demand across existing and new markets, strengthen the captain network, invest in technology infrastructure, and scale hiring across functions.
The Bengaluru-based startup also plans to deepen its presence in tier II and smaller cities where affordable mobility demand continues to grow rapidly.
Founded in 2015, Rapido operates across more than 400 cities and has emerged as one of India’s largest mobility platforms spanning bike taxis, auto rides, and cab services.
The company has positioned itself as a low-cost mobility platform focused on affordability, faster urban transportation, and flexible income opportunities for captains.
The latest funding round comes at a time when competition in India’s ride hailing market is intensifying sharply.
While Uber and Ola historically dominated the sector, Rapido’s aggressive expansion strategy and lower-cost offerings have helped it rapidly gain market share across multiple cities.
In August 2025, Uber CEO Dara Khosrowshahi publicly acknowledged that Uber now considers Rapido its biggest competitor in India, ahead of Ola, which he described as a distant third player.
The shift reflects how significantly Rapido has altered India’s mobility landscape over the past few years.
The company’s improving financial performance has also strengthened investor confidence.
Rapido’s operating revenue increased to Rs 934 crore in FY25 from Rs 648 crore in FY24.
At the same time, the company reduced its net loss by more than 30% to Rs 258 crore in FY25, compared to Rs 371 crore in the previous fiscal year.
The company is yet to report its FY26 financial results.
Meanwhile, rivals are also stepping up investments in India.
Uber recently infused nearly Rs 3,000 crore (around $330 million) into its Indian business amid intensifying market competition and expanding demand for mobility services.
Uber is also preparing to launch its first India data centre through a partnership with Adani Group and plans to open two new engineering campuses in Bengaluru and Hyderabad by 2027.
On the other hand, Ola has already initiated IPO preparations despite reporting a sharp decline in revenue and widening losses during FY25.
As part of its next growth phase, Rapido is expected to further focus on women captains, rider safety initiatives, accessibility improvements, and deeper penetration into high-growth non-metro markets.
With investor appetite returning to mobility startups and urban transportation demand continuing to expand, Rapido’s latest funding round positions the company among India’s most valuable consumer internet startups.