Rapido, a Bengaluru-based taxi service provider, is reportedly, in advanced talks to close a $50 million round led by Westbride Capital and Shunwei Capital, reported Livemint, citing anonymous sources.
Post the round if take place, will value the startup at $200 million, added the sources. The startup had raised $10 million in January in a round led by Nexus and Integrated Capital.
Anyone with a two-wheeler license, a bike, a vehicle registration certificate, and bike insurance can register themselves as a Rapido Captain.
Whereas, earlier, the Bengaluru-based bike taxi service was banned by Madras High Court in Karnataka.
“Rapido is also planning to go deeper into the northern markets and in Tier 2 and 3 cities, where there is significant scope for growth and no regulatory issues,” said sources.
Rapido’s fundraise continues an emerging trend where investors are pouring in millions of dollars into startups despite the companies facing regulatory concerns.
Shunwei’s investment in Rapido also marks its first deal outside the fintech and content space in India.
“The strategy to invest in bike mobility in India follows Shunwei’s strategy in China, where Xiaomi is a major investor in Ofo, China’s leading bike-sharing firm,” the source added.