Indian bike-taxi service app Rapido has secured $55 million in a Series B round of financing from a group of investors including Shunwei Capital, a Chinese venture capital firm led by smartphone maker Xiaomi’s founder Lei Jun.
India-focused investment company WestBridge Capital; Alibaba-backed BAce Capital, which specializes in early-stage investments in India and Southeast Asia; and Rapido’s existing investor Nexus Venture Partners all poured money into the new round, Shunwei Capital said in a statement on its official WeChat account.
Rapido was founded in 2015 to provide a two-wheeler version of ride-hailing services to customers through a mobile app. The Bengaluru-based bike-taxi business, which now operates across 13 cities in India, plans to use the proceeds to expand to 100 cities within one year, enhance its technology and beef up its management team.
“Rapido’s users are mainly from second and third-tier cities, which means that the future market size tapped by the company will exceed that of other companies who only focus on urban citizens [in top-tier cities],” said Tuck Lye Koh, founding partner and CEO of Shunwei Capital.
Shunwei Capital, which also invested in Indonesian unicorn Gojek, has been raising the stakes in emerging economies, especially in India. Most recently, the company participated in a $12 million funding round for Indian digital lending platform LoanTap in late September.
In August, the company also backed a $100-million investment in ShareChat, a regional language video and picture sharing platform in India, and a $125 million round for Bangalore-based social commerce platform Meesho.