Prosus Looks to Invest $200 Million in Rapido at $2.5 Billion Valuation: Report

Dutch investment firm Prosus is in discussions to invest about $200 million (₹1,750 crore) in ride-hailing company Rapido, as per the Moneycontrol report. The talks are focused on increasing Prosus’ stake in the startup, where it currently owns about 3-4%.

As per the reports, the funding may be structured either through primary capital infusion or by purchasing shares from existing investors. A combination of both options is also being considered, which could raise the overall size of the round.

Valuation Growth

As per news reports, Rapido is being valued at $2.5-$2.7 billion in the ongoing negotiations. This is more than double the $1.1 billion valuation recorded in December 2024. The company’s expansion into new services such as autorickshaws, cabs, and food delivery has contributed to the higher valuation.

Swiggy’s Planned Exit

As per the Moneycontrol reports, Swiggy is preparing to sell its entire 12% stake in Rapido. The food delivery company invested $120 million in Rapido in 2022 and is now looking to raise about $300 million (around ₹2,500 crore) from the planned sale. Swiggy’s decision comes as Rapido enters the food delivery market, creating an overlap in operations.

User Base and Business Growth

Rapido’s Gross Merchandise Value (GMV) has crossed $2 billion, doubling within a year. The company has around 50 million monthly active users, compared with Uber India’s 30 million, as per the Citi report. Uber’s CEO recently named Rapido as the company’s main competitor in India, instead of Ola.

Rapido’s Financial Performance

In FY24, Rapido’s operating revenue rose 1.5 times to ₹648.1 crore from ₹443 crore in FY23. The company also reduced its losses by over 45% to ₹370 crore during the same period. Since its launch in 2015, Rapido has raised more than $500 million from investors, including WestBridge Capital and Nexus Venture Partners, as per news reports.

Read More: Rapido Launches New Food Delivery App 'Ownly' in Bengaluru!

Conclusion

With Prosus considering a $200 million investment and Swiggy planning an exit, Rapido’s ownership structure is set for changes. The outcome will depend on the ongoing negotiations.

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