Hong Kong’s multi-strategy private investment office Integrated Capital has led a $10-million funding round for Indian bike taxi startup Rapido.
The fresh round of funding was joined by existing investors Skycatchr, AdvantEdge and Astrac Ventures.
The Bengaluru-based startup plans to use the funds to expand its domestic operations, with a target of reaching 25 cities by the end of the year. At present, Rapido claims to process 2.5 million orders a month and plans to grow to 20 million orders by the end of 2019.
Founded by Rishikesh SR, Pavan Guntupalli and Aravind Sanka in 2015, Rapido says it has 10,000 active “captains” — what it calls its drivers — including women.
“India’s ride-sharing is beyond four-wheelers and we see two-wheeler ride-sharing is unlocking new customer base in India by bringing convenience at an affordable price,” said Jeffrey Yam, Principal Investments at Integrated Capital.
Rapido had earlier raised an undisclosed amount of investment from the promoter of Indian two-wheeler giant Hero MotoCorp in 2016. Early-stage investment firms AdvantEdge Partners and Astarc Ventures had also participated in the round.
Bike taxis are common in Southeast Asian countries such as Indonesia, Vietnam and Thailand and some African markets. In India, other startups in this space include Baxi and Delhi-NCR-based Bixxie. Ride-hailing majors Ola and Uber have attempted to get into the space but have not been very successful so far.
In the two-wheeler sharing space most recently, Bengaluru-based dockless scooter sharing platform Bounce, which had acquired the assets of the Indian arm of Chinese cycle sharing venture Ofo, raised a $7-million round led by Sequoia India, Chiratae Ventures and Accel India.