Indian rival Uber Rapido has raised $240M in a $3B valuation

An Indian Ride-hailing company Quickly said Friday it raised $240 million in a $3 billion deal to better compete in a growing but challenging market.

Led by Prosus, the equity round received participation from existing investors, including WestBridge Capital and Accel. The round was part of a larger $730 million budget for elementary and secondary schools. Rapido has already been praised $2.3 billion in the second trade last year.

Rapido said the new capital will be used to expand its high-growth markets, strengthen its drivers, and invest in technology and the use of the platform.

“We are going deep into markets where there is demand, but availability is fragmented,” Rapido co-founder Aravind Sanka said in a statement. “We will expand our focus on strengthening, building technologies, and expand our range of products, faster and faster.”

The investment strategy underscores the continued interest of investors in India’s travel sector despite many concerns about pressure on pricing, regulation, and profitability.

Launched in 2015, Rapido operates in over 400 cities and has fueled its growth by enabling affordable and flexible modes of transportation such as motorbikes and rickshaws in India’s densely populated and fare-neutral cities. The Bengaluru-based startup has also expanded into smaller towns.

The investment comes after Uber CEO Dara Khosrowshahi’s visit to India, where the ride-hailing giant this week unveiled its plans. expanding its engineering and construction services through two new technology campuses and central data collaboration. Uber earlier this year injected $330 million into its India group as it seeks to strengthen its presence amid growing competition from competitors like Ola, Rapido, and Namma Yatri.

Khosrowshahi said last year that Rapido had overtaken Ola as Uber’s biggest competitor in the country.

India is currently one of the most challenging markets in the world due to price competition, supply issues, high driver costs, and changing local regulations. However, Rapido has quickly expanded its market share, though entering the catering business through its subsidiary Only last year.