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

Indian ride-hailing company Rapido said on Friday it had raised $240 million in fresh funding at a $3 billion valuation to compete better in the country’s growing but challenging mobility market. Led by Prosus, the equity round saw participation from existing investors, including WestBridge Capital and Accel. The round was part of a larger $730 million primary and secondary financing. Rapido was previously valued at $2.3 billion during a secondary transaction last year. Rapido said the fresh capital would be used to increase its footprint in high-growth markets, strengthen its driver network, and invest in technology and platform efficiency. “We are going deeper into markets where demand exists, but supply remains fragmented,” Rapido co-founder Aravind Sanka said in a statement. “We will sharpen our focus on strengthening supply, building technologies, and expanding our multi-modal footprint, with far greater speed and intent.” The funding round underlines continuing investor interest in India’s mobility sector despite persistent concerns about pricing pressures, regulation, and profitability. Founded in 2015, Rapido operates in more than 400 cities, and has spurred its growth by enabling ride-hailing for lower-cost and more flexible modes of transport such as motorbikes and autorickshaws in India’s congested, price-sensitive cities. The Bengaluru-based startup has been expanding to smaller towns, too. …