India’s ride-hailing startup Rapido is gearing up for a substantial fundraise, eyeing a whopping $100 million (approximately INR 833.9 crore) injection into its coffers from existing investor WestBridge Capital and other potential backers.

Reports indicate that the company has already secured commitments nearing $70 million and is actively seeking additional support from Indian family offices to bolster its financial position further.

If successful, this funding round is poised to catapult Rapido’s valuation to a staggering $900 million, according to insiders familiar with the matter.

Rapido’s journey with WestBridge Capital traces back to 2021 when the investment firm led the Series C funding round, injecting $43 million into the venture. Speaking on this continued support, Rapido’s cofounder Aravind Sanka affirmed, “It (WestBridge) is our existing investor and invested in every round. They will keep supporting us in the future as well, whenever we raise.”

Founded in 2015 by Sanka, Rishikesh SR, and Pavan Guntupalli, Rapido has carved a niche in the ride-hailing domain, primarily focusing on bike taxi and auto services. However, its recent foray into cab services in select cities reflects an ambitious expansion strategy. Additionally, the company has ventured into peer-to-peer delivery services through Rapido Local.

With an extensive fleet comprising 5 million bike taxis and 7 lakh auto-rickshaws, Rapido boasts a presence in over 100 Indian cities, backed by a substantial user base of over 25 million app downloads.

Apart from WestBridge Capital, Rapido’s investor roster includes prominent names like Swiggy, TVS Motors, Nexus Ventures, and Shell Ventures, underscoring investor confidence in the startup’s growth trajectory.

However, Rapido’s financials reveal a stark reality, with the company reporting a standalone loss of INR 674.5 crore in the financial year 2022-23 (FY23), marking a significant 53.6% surge from the previous fiscal year’s loss of INR 439 crore. The spike in losses is attributed to a substantial increase in employee costs during the period.

In a strategic move aimed at fortifying its competitive edge, Rapido recently rolled out a Software as a Service (SaaS)-based zero commission model for auto drivers. This initiative signifies a shift away from the traditional aggregator-commission-led model, empowering auto drivers with a lifetime zero commission structure aimed at enhancing their earnings and reducing dependency on commission rates.

As Rapido continues to navigate the dynamic landscape of India’s mobility sector, its latest funding endeavor and innovative business strategies underscore its commitment to drive sustainable growth and innovation in the industry.