Rapido, a motorcycle taxi aggregator in India, stated on Monday it has raised $52 million in a brand new financing spherical because the six-year-old startup seems to be to search out area in a class dominated by Ola and Uber within the South Asian market.
The six-year-old startup’s new funding — Collection C — was financed by Shell Ventures, Yamaha, Kunal Shah of CRED, Amarjit Singh Batra of Spotify India, and Optimistic Strikes Consulting. Current buyers Pawan Munjal of Hero Group, Westbridge, Nexus Enterprise Companions and Everblue Administration additionally participated within the spherical, which brings its to-date elevate to over $130 million.
Rapido gives its two-wheeler service in about 100 Indian cities. The startup says it has amassed over 15 million clients and 1.5 million driver-partners who it calls captains. In recent times, the startup has additionally expanded in three-wheeler area, which it says recorded a development of 4X since final 12 months in 26 cities the place it’s operational, and hyperlocal supply.
In an announcement, the startup stated its platform, which was hit by the coronavirus pandemic that prompted India to implement lockdown in a number of states, has already seen an 85% restoration. The startup attributed development partly to the rising e-commerce and hyperlocal supply alternatives in India.
“Despite the fact that our product and enterprise mannequin are profitable and have the potential to churn out an distinctive income, this fundraising signifies extra of the buyers’ confidence in us than the necessity for capital,” stated Aravind Sanka, co-founder of Rapido, in an announcement.
He stated the startup hopes to increase to serve 50 million clients within the subsequent 18 months. The startup plans to additionally deploy capital to broaden its expertise stack — it’s trying to make strategic investments — and rent extra individuals
The expansion of Rapido follows a shift in India’s mobility market, the place Uber and Ola flooded greater than 1,000,000 cabs up to now decade. In city cities, two-wheelers and three-wheelers have confirmed simpler as a result of they will zip by a lot sooner in visitors and are extra reasonably priced.
Each Ola and Uber have additionally expanded to two-wheeler and three-wheeler classes lately, inking partnerships with corporations resembling Vogo and Yulu. Ola has moreover expanded into manufacturing of electrical automobiles. On Sunday, it launched its first electrical scooter, known as Ola S1, that’s priced at 99,999 Indian rupees, or $1,350. The electrical scooter gives a variety of 121 kilometers (75 miles) on a whole cost.