Indian Uber rival Rapido raises $240M at $3B valuation - BERITAJA

Indian ride-hailing institution Rapido said connected Friday it had raised $240 cardinal successful caller backing astatine a $3 cardinal valuation to compete amended successful the country’s increasing but challenging mobility market.

Led by Prosus, the equity information saw information from existing investors, including WestBridge Capital and Accel. The information was portion of a larger $730 cardinal superior and secondary financing. Rapido was antecedently weighted astatine $2.3 billion during a secondary transaction past year.

Rapido said the caller superior would beryllium utilized to summation its footprint successful high-growth markets, fortify its driver network, and put successful exertion and level efficiency.

“We are going deeper into markets wherever request exists, but proviso remains fragmented,” Rapido co-founder Aravind Sanka said successful a statement. “We will sharpen our attraction connected strengthening supply, building technologies, and expanding our multi-modal footprint, pinch acold greater velocity and intent.”

The backing information underlines continuing investor liking successful India’s mobility assemblage contempt persistent concerns about pricing pressures, regulation, and profitability.

Founded successful 2015, Rapido operates successful much than 400 cities, and has spurred its maturation by enabling ride-hailing for lower-cost and much elastic modes of carrier specified arsenic motorbikes and autorickshaws successful India’s congested, price-sensitive cities. The Bengaluru-based startup has been expanding to smaller towns, too.

The backing comes successful the aftermath of Uber CEO Dara Khosrowshahi’s sojourn to India, wherever the ride-hailing elephantine this week unveiled plans to expand its engineering and infrastructure operations via 2 caller exertion campuses and a section information halfway partnership. Uber earlier this twelvemonth infused $330 cardinal into its India subsidiary arsenic it sought to fortify its beingness amid increasing title from section rivals for illustration Ola, Rapido, and Namma Yatri.

Khosrowshahi said past twelvemonth that Rapido had overtaken Ola arsenic Uber’s biggest competitor successful the country.

India is presently 1 of the world’s about challenging ride-hailing markets because of aggravated value competition, proviso issues, precocious driver inducement costs and evolving section regulations. Nevertheless, Rapido has quickly expanded its marketplace share, moreover entering the nutrient transportation business done its subsidiary Ownly past year.