Dutch investment firm Prosus is in advanced discussions to invest about $200 million (₹1,750 crore) in ride-hailing platform Rapido, according to reports. The move is aimed at increasing Prosus’ stake in the company, which currently stands at 3–4%.
Investment Structure
The funding is likely to be structured either as a primary capital infusion, a secondary sale of shares from existing investors, or a mix of both. If finalised, the deal could expand the overall size of the funding round.
Surge in Valuation
Ongoing negotiations value Rapido at $2.5–2.7 billion, more than double its $1.1 billion valuation in December 2024. The jump reflects Rapido’s rapid diversification into autorickshaw rides, cab services, and food delivery, which have significantly expanded its business footprint.
Swiggy’s Exit Plan
Food delivery giant Swiggy is preparing to exit its entire 12% stake in Rapido. Swiggy had invested $120 million in 2022 but now expects to raise about $300 million (₹2,500 crore) from the sale. The exit comes amid growing overlap between the two companies as Rapido steps into the food delivery segment.
Strong User Base & Growth Momentum
Rapido has crossed $2 billion in Gross Merchandise Value (GMV), doubling its scale within a year. Its 50 million monthly active users have already outpaced Uber India’s 30 million. In fact, Uber’s CEO recently identified Rapido—not Ola—as its main competitor in the Indian market.
Financial Performance
For FY24, Rapido’s operating revenue rose 1.5 times to ₹648.1 crore, compared to ₹443 crore in FY23. The company also managed to cut its losses by over 45% to ₹370 crore. Since its inception in 2015, Rapido has raised more than $500 million from investors including WestBridge Capital and Nexus Venture Partners.
Summary
Prosus is set to deepen its stake in Rapido with a $200 million investment at a $2.5 billion valuation, marking a sharp rise in the startup’s market worth. The funding round may coincide with Swiggy’s planned $300 million exit, as Rapido expands aggressively into cabs, autorickshaws, and food delivery. With 50 million monthly active users, $2 billion GMV, and improving financial performance, Rapido has emerged as a formidable rival to Uber in India.
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