Prosus to Provide $60 Million Investment to Rapido

Nitin Konde, Varun Bhardwaj

Oct 12, 2024 — 3 min read

Prosus Provide Investment to Rapido

According to reports, Dutch investment firm Prosus is nearing $60 million (INR 503 Cr) in funding for Indian ride-hailing unicorn Rapido through a combination of main and secondary share sales. According to insiders, Rapido's current $200 million funding round will include this additional funding.

The conditions of the agreement have reportedly already been decided, according to many media reports. "Prosus plans to invest $60 million in Rapido. Sources familiar with the development said, "The deal's parameters have been finalised, and it will also allow early supporters to make partial departures." Rapido's Series E investment will come to an end with this $60 million round. The company's present valuation is projected to remain unchanged despite the investment.

Rapido Joining the Unicorn Club

After last month's revelation that Rapido had raised $200 million in Series E financing led by current investor WestBridge Capital, this new development is even more significant. With a $1.1 billion valuation, that round catapulted the Bengaluru-based business into the unicorn club.

Rapido was established in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR. It provides bike taxis, auto rides, and most recently, cab services in a few locations. Furthermore, the platform uses Rapido Local to enable peer-to-peer delivery. The firm has raised approximately $625.75 million to date thanks to the support of a number of well-known investors over the years, including Swiggy, TVS Motor Company, and Shell Ventures.

Rapido has encountered financial difficulties in spite of its expansion. The company saw a 50% year-over-year increase in net loss to INR 674.5 Cr in the fiscal year 2022-2023 (FY23). But compared to FY22, when it made INR 144.8 Cr, its operational revenue increased to INR 443 Cr.

Prosus Expansion Plans in India

As the Dutch investor has been increasing its presence in the Indian market, this new investment from Prosus arrives at a perfect time. It was recently revealed that Prosus is thinking about making a $30 million secondary investment in the hyperlocal services platform Urban Company, with Bessemer Venture Partners receiving a portion of the proceeds. Prosus demonstrated its continued dedication to India in August when it invested $350 Cr in Bluestone's INR 900 Cr pre-IPO financing.

The investor is also eager to profit from the foodtech giant Swiggy's impending initial public offering (IPO), in which it intends to sell 11.8 Cr of shares as part of the offer for sale (OFS) component.

About Prosus

Prosus is one of the biggest technological investors and operators in the world, as well as a global consumer internet organisation. In areas like Europe, India, and Brazil, the group is concentrated on developing significant businesses in the online ads, payments & fintech, food delivery, and education technology sectors.

It supports regional business owners that create worthwhile goods for over 2 billion consumers while fostering the development of their local communities. Prosus gives its employees the tools they need to advance their careers and learn new skills.