Rapido IPO Soon? Fresh Funding Fuels Big Expansion Plans!

India’s ride-hailing space is heating up, and Bengaluru-based Rapido is making big waves. With its latest funding round of INR 250 crore (approximately USD 29.7 million) from global investment firm Prosus, the bike-taxi startup is gearing up for expansion and possibly, an IPO.

This fresh investment, part of Rapido’s ongoing Series E round, follows a massive INR 1,000 crore (USD 120 million) funding from WestBridge Capital in September 2024. With a total Series E funding of INR 1,650 crore (about USD 200 million), Rapido has strengthened its position in the market, fueling speculations that the startup might soon take the IPO route.

Rapido Expansion Plans: Targeting 500 Cities

Rapido, which initially disrupted the mobility space with its bike taxis, has now expanded into auto-rickshaws and cab aggregations, challenging giants like Ola and Uber. Currently operational in over 120 cities, the company aims to scale its services to 500 cities across India.

As per regulatory filings, the newly acquired capital will be directed towards:

• Strengthening Rapido’s technology infrastructure
• Enhancing operational efficiency
• Expanding deeper into Tier 2 and Tier 3 cities

By tapping into smaller cities, Rapido is reaching new customer bases, setting itself apart from competitors that primarily focus on metro areas.

Rapido IPO Soon?

Officially, Rapido’s leadership has played down IPO speculations. In a September 2024 interview, Co-founder and CEO Aravinda Sanka stated that the company’s current focus is on expanding services rather than going public.

However, funding trends tell a different story. Startups that secure late-stage Series E funding usually transition towards an IPO instead of raising additional private capital through a Series F round.

With Rapido’s valuation surpassing USD 1.1 billion and its financials steadily improving, market experts believe the company is preparing to go public in the near future.

Financial Performance: Rapido on the Fast Track

Rapido’s financials indicate strong momentum, suggesting that it may be heading for the stock market sooner than expected.

• Revenue Growth: 46.3% YoY growth, reaching INR 648 crore in FY 2023-24
• Loss Reduction: Losses down by 45%, now standing at INR 371 crore
• Gross Order Value (GOV): 2.5x YoY increase, reaching INR 2,461 crore in Q2 FY25 from INR 977 crore in Q2 FY24
• Ride Volume: 207 million completed rides in Q2 FY25, doubling compared to the previous year

These numbers reflect Rapido’s strong market positioning and improved cost management, making an IPO a likely next step.

Beyond Ride-Hailing: Quick Commerce & Sustainability

Rapido isn’t stopping at bike taxis. The company is actively venturing into quick commerce logistics, leveraging its extensive network of riders to offer last-mile delivery services. This move aligns with India’s growing demand for rapid e-commerce deliveries.

Another key focus area is sustainability. In cities like Delhi, 25% of Rapido’s rides are now conducted via electric vehicles (EVs), and the company is committed to transitioning to a fully electric fleet in the coming years.

ESOP Liquidation: A Strong IPO Signal?

Adding fuel to the IPO rumors, Rapido recently launched its first-ever Employee Stock Ownership Plan (ESOP) liquidation program. This initiative allows both current and former employees to cash in on their stock holdings— a move typically seen in companies preparing for a public listing.

By offering employees a stake in its success, Rapido is not only boosting morale but also creating positive market sentiment, further solidifying IPO speculations.

Is Rapido the Next Big IPO?

While Rapido has yet to confirm IPO plans, multiple indicators—massive late-stage funding, strong financial growth, ESOP liquidation, and aggressive expansion—suggest that the company may be gearing up for a stock market debut.

With its increasing footprint, improving profitability, and entry into new business verticals, Rapido is emerging as a formidable player in India’s mobility sector. If all goes as planned, investors might soon have an opportunity to ride along with Rapido on the stock market.

For now, the startup is keeping its cards close to its chest, but all signs point toward one destination—an IPO in the next 12 to 18 months!

Join Our Thriving Entrepreneurial Community

Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review