Tag Rapido

Mumbai, 5th September 2024: Rapido, India’s largest ride-sharing platform, has received commitments to the tune of ~$200 million in its Series E funding, marking a significant milestone in its mission to transform shared mobility across the country.

The Series E funding round was led by WestBridge Capital, a prominent investment firm focused on investments in India. The round also saw participation from existing investor Nexus, along with new investors Think Investments and Invus Opportunities. This latest investment elevates Rapido’s post-money valuation to $1.1 billion, reinforcing its strong position in the urban mobility sector.

Speaking on the funding Aravind Sanka, Co-founder of Rapido said, “With this new infusion of capital, we are eager to explore and expand our offerings, ensuring we meet the evolving needs of our customers. Over the past year, we’ve experienced significant growth, with our daily rides surging to 2.5 million. This investment will empower us to continue innovating and improving our services, allowing us to better serve our customers and make significant strides in enhancing urban mobility for everyone.”

Sumir Chadha, co-founder and Managing Partner at WestBridge Capital, said “In the five years since the initial investment made in Rapido, we’ve seen Aravind, Pavan, Rishikesh and the team transform it into India’s leading low-cost mobility platform. From dominating bike taxis to making significant strides into 3W autos and cabs, their growth is a testament to their operational rigor and relentless focus on customer and captain satisfaction. We congratulate the team on their capital efficient scaleup, which now positions Rapido amongst India’s most used consumer internet apps. This latest funding round underscores our ongoing commitment to their journey”

The newly raised funds will be strategically allocated to expanding Rapido’s operations across India and scaling its technology platform to enhance service delivery. Rapido plans to grow its operations across all categories, including bike-taxis, three-wheelers, and taxi-cabs.

Since its inception 9 years ago, by driving more than 150% year-on-year growth, Rapido has revitalized the consumer internet space in India, solidifying its position as a leader in the shared mobility sector. Initially focused on bike-taxis, the company has since diversified into auto and cab services, expanding its value proposition and strengthening its operations. Rapido has also extended its reach beyond metro cities, establishing a presence in over 100 cities, including tier 2 and 3 cities across the country.

Bangalore, March 14, 2024: Rapido, a leading bike taxi platform, extends its warm appreciation to the Government of Karnataka for its recent decision to withdraw the electric bike taxi policy, notified in 2021. This significant move reflects the government’s commitment to fostering a conducive environment for innovation and growth within the ride-hailing sector.

However, there is confusion surrounding the government’s withdrawal of the electric bike taxi scheme as well as inaccurate information circulating on social media platforms. The Company pointed out that the recent order issued by the State Government of Karanataka nowhere mentions banning Rapido or any other aggregator operating under the protection of the High Court order.

We clarify that the Electric Bike Taxi Scheme notified in 2021 and now withdrawn in 2024 only pertains to grant of license for operating Electric Bike Taxis, this fact is self-evident under Clause 1(4) which specifically mention that this scheme shall only apply for Battery operated electric motorcycle or electric bike.

Rapido would like to shed light on the legal status of its operations and other similarly placed aggregators operating two-wheelers as bike taxis in the State of Karnataka. The issue of operation on bike taxis has been pending with the Hon’ble High Court since 2021.

The High Court had passed an interim protective order in favour of Rapido back in 2021 observed as follows-

“Petitioner (Rapido) submitted application for grant of bike Aggregator’s Licence to the Commissioner of Transport and it was rejected while issuing an endorsement that petitioners are required to file application for grant of Aggregator’s Licence before authority as specified in the Karnataka Electricity Bike Taxi Scheme 2021. Grievance of the petitioner in the application is for issuance of grant of bike Aggregator’s Licence not under the Electricity Bike Taxi Scheme. Therefore, there is non- application of mind in issuing the endorsement, since, reference is to the Karnataka Electricity Bike Taxi Scheme, 2020-21. On the other hand, petitioner’s grievance is for issuance of licence to general bike taxi’” and the High Court basis these specific observations directed the State Government of Karnataka not to take any coercive steps against the aggregator or its riders operating in the State of Karnataka. This protective interim order remains subsisting till date.

The Ministry of Road Transport and Highways (MoRTH) on 22nd January also recently issued an advisory clarifying that motorcycles fall within the definition of contract carriages as per section 2(7) of the Motor vehicles (MV) Act, 1988.

Pavan Guntupalli, co-founder of Rapido, stated, “We want to assure our customers and captains that Rapido will continue to operate seamlessly within Karnataka. Rapido is upholding the interim order from the Hon’ble High Court, which recognizes the legality of Rapido’s operations, reinforces our resolve to continue serving the people of Karnataka. With over 1,000,000 bike taxi rides happening in Bengaluru alone, it’s evident that bike taxis play a crucial role in Karnataka’s transportation ecosystem. This data highlights the significant demand and reliance placed on bike taxis for convenient and efficient mobility solutions across the state. Rapido expresses confidence that the Transport Department of the Government of Karnataka will adopt a more comprehensive approach, in line with the provisions of the Motor Vehicle Act and the recent advisory issued by the Ministry of Road Transport and Highways (MoRTH) related to grant of contract carriage permit to two wheelers. We firmly believe that the revised approach will facilitate the grant of contract carriage permits to two-wheelers and bike taxis, aligning Karnataka with states that have successfully implemented similar models. This move is not only crucial for the growth of the sector but also ensures compliance with the existing provisions of Motor Vehicle Act, 1988 and Motor Vehicle Rules. “

It is worth mentioning that the recent notification issued by the government nowhere mentions banning Rapido or any other aggregator operating under the protection of the High Court order.

Rapido expresses confidence that the Transport Department of the Government of Karnataka will adopt a more comprehensive approach, in line with the provisions of the Motor Vehicle Act and the recent advisory issued by the Ministry of Road Transport and Highways (MoRTH) related to grant of contract carriage permit to two wheelers. We firmly believe that the revised approach will facilitate the grant of contract carriage permits to two-wheelers and bike taxis, aligning Karnataka with states that have successfully implemented similar models. This move is not only crucial for the growth of the sector but also ensures compliance with the existing provisions of Motor Vehicle Act, 1988 and Motor Vehicle Rules.