Rapido Raises $240M at $3B Valuation, Targets IPO
Rapido has raised $240 million at a $3 billion valuation and is targeting an IPO within two to three years. The mobility unicorn, which began as a bike-taxi platform, now claims 70% of India's bike taxi market and has expanded into autos, cabs, and deliveries.
Rapido has raised $240 million at a $3 billion valuation, according to a company interview with Inc42. Founder Aravind Sanka stated the mobility unicorn is targeting an initial public offering within the next two to three years.
Founded in 2016 by Aravind Sanka, Pavan Guntupalli and Rishikesh SR, Rapido began by connecting motorcycle owners with passengers seeking affordable rides. Its early investors in a pre-Series A round included Hero MotoCorp’s Pawan Munjal, Google’s Rajan Anandan and People Group founder Anupam Mittal. The company has since evolved from a bike-taxi service into a broader mobility and delivery ecosystem, now help over 5 million rides daily across more than 400 cities.
Financial Performance and Market Share
Rapido's operating revenue grew 44.2% to ₹934.4 crore in FY25, while its net loss narrowed by 30.3% to ₹258.4 crore. This marked a second consecutive year of shrinking losses, following a net loss of ₹370 crore in FY24 on revenue of ₹648.1 crore. Although the company has yet to report an annual profit, its Gross Merchandise Value grew 111% year-on-year in the first half of FY26, according to a Prosus investor presentation.
In an April 2025 interview, Sanka provided the company's estimates of its market share. He claimed Rapido holds 70% of India's bike taxi market, nearly 40% of auto rides and 22% of cab hailing.
| Service | Rapido's Claimed Market Share |
|---|---|
| Bike Taxi | 70% |
| Auto Rides | Nearly 40% |
| Cab Hailing | 22% |
The Super App Expansion
The company's expansion has brought it into closer competition with giants like Ola and Uber, as well as regional players such as Namma Yatri and Red Taxi. Its services now span bikes, autos, cabs, parcel and hyperlocal delivery, and food delivery through its Ownly brand. The Ownly pilot began in Bengaluru in 2025, introducing a zero-commission model for restaurants and pitting Rapido against Swiggy and Zomato.
A company spokesperson argued the expansion use existing assets. "By integrating Ownly into the Rapido ecosystem, the company can use its existing technology, consumer base, and delivery network rather than building an entirely separate infrastructure," they said.
The Subscription Model Shift
Rapido initially used a commission model, taking a share of each ride fare. However, when it launched cab services in 2023 and auto services in 2024, it introduced a zero-commission subscription model. Drivers pay a fixed daily fee for unlimited platform access instead of surrendering a percentage of every fare. Uber and Ola have since launched similar subscription offerings in 2025.
Industry stakeholders and analysts believe the shift at Ola and Uber is less about let drivers and more about staying relevant. This makes the subscription a price the entire category now shares, rather than a unique lever for Rapido.
Use the Network for Delivery
The company's delivery arm, Rapido Local, launched during the pandemic for moving food, groceries, and medicines. It has since grown into a logistics service for other businesses. Sanka noted in a March 2026 interview that its network handles deliveries for Swiggy, Zomato, various e-commerce platforms, and is a major partner for ONDC.
A spokesperson framed deliveries as a logical extension. "Parcel and hyperlocal delivery are natural extensions of Rapido’s existing network, creating additional use cases for the same supply infrastructure while providing more earning opportunities for Captains," they said. The company's challenge is whether adding more services to the same network will generate enough additional income to cover the costs of expansion, a key test for a firm still pursuing profitability.
