Funding · Mobility & Logistics

Swiggy set to lead $200 million round in Rapido

By Startup Enthusiast · 22 December 2021

What they do

Rapido operates a transport network focused on bike taxis, autos, and logistics services across multiple cities

Food delivery firm Swiggy is in advanced talks to lead a $200 million funding round in the platform

The transaction helps Swiggy expand into the mobility sector while strengthening its hyperlocal delivery logistics capabilities

Food delivery firm Swiggy is finalising plans to lead a $200 million investment round into bike taxi operator Rapido. Swiggy expects to deploy approximately $100 million from its own balance sheet for the transaction. The remaining $100 million of the capital will come from a mix of new and existing institutional backers. The financing is projected to push Rapido close to unicorn status with a valuation between $850 million and $900 million. The strategic partnership will allow Swiggy to expand its presence in the mobility market and improve its delivery capabilities.

Rapido experienced significant business disruption during the pandemic fiscal year but has since mounted a recovery. The company currently facilitates approximately 10 million monthly rides across its various transport formats. The vast majority of its volume originates from the bike taxi segment while autos and logistics make up the rest. The mobility sector has seen renewed investor interest with several competitors securing fresh capital recently. Rapido previously held acquisition talks with Ola and funding discussions with Zomato before pursuing this arrangement.

Rapido provides app-based transportation services including bike taxis, auto rickshaws, and cab bookings. The platform connects everyday commuters with independent drivers known locally as captains. It operates an enterprise division offering corporate travel and delivery solutions across various urban centers. The business generates revenue through commissions charged on completed rides and logistics delivery tasks. Its service model focuses on affordable last-mile connectivity and quick urban transit.

Product: A ride-hailing app focused on bike taxis, with expanding mobility and delivery offerings.
Customers: Commuters and riders seeking low-cost transport, plus drivers earning through the platform.
How it makes money: Charges commissions or service fees on rides and related marketplace transactions.
What sets it apart: Uses two-wheelers to provide low-cost, flexible urban transport and matching.
Operations: Operates in multiple Indian cities and is building a broader super-app model.

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