Ride-hailing company Rapido is set to raise Rs 125 crore from US-based venture capital firm Nexus Ventures as it looks to chart its entry into the food delivery space and setting up of a fintech unit.
According to a filing with the Registrar of Companies (RoC), the company’s board has passed a resolution to issue 23,872 Series E Compulsorily Convertible Preference Shares of face value of Rs 10 each for cash at a premium of Rs 52,457 per share, each at an issue price of Rs 52,467 per share for a total value of Rs 125.2 crore.
The company last raised Rs 250 crore from global technology investor Prosus in February this year. The company had also raised $200 million in September last year, from a group of investors, including WestBridge Capital and Nexus Venture Partners, at a unicorn valuation.
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Rapido’s funding comes at a critical time for the ride-hailing company that is looking to branch out from its core mobility business. The firm is eyeing its entry into the food delivery space, that is majorly controlled by foodtech giants Zomato and Swiggy.
According to multiple reports, the Bengaluru-based company has begun onboarding restaurants and is targeting to offer a significantly lower commission charge compared to peers operating in the space.
In April, YourStory had reported that Rapido is setting up a separate subsidiary to enter the fintech space and has begun internal groundwork for the new unit. The finer details of this subsidiary continues to remain under wraps but Rapido is eyeing offerings in lending and adjacent financial services.
Meanwhile, Rapido’s ride-hailing segment is set to expand its services to 500 cities as it looks to compete with US-based Uber, Ola Consumer and Namma Yatri in the cab aggregation space. The company was operating in around 120 cities as of January this year.
