Nexus Venture Partners has invested 125 crore rupee (US$15 million) in Rapido, valuing the urban mobility platform at US$1.1 billion.

The investment was disclosed in a filing with the Registrar of Companies.

Rapido plans to launch a pilot food delivery service this month, with restaurant commission rates between 8-15%, lower than Zomato and Swiggy’s 16-30%.

Rapido recently expanded into four-wheeler ride-hailing, adding to its bike-taxi and hyperlocal logistics services.

In FY25, its gross order value (GOV) surpassed US$1.25 billion, with 3-3.5 million daily orders across vehicle types.

The company is also exploring insurance distribution for drivers and customers.

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🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Multi-vertical expansion is critical for ride-hailing platforms to achieve unicorn status

Rapido’s evolution shows how ride-hailing companies must expand beyond their core services to sustain growth and valuation.

Starting as a bike-taxi platform in 2015, Rapido has strategically expanded into four-wheeler rides, hyperlocal logistics, and now food delivery, all while achieving a $1.1 billion valuation 1.

This trend reflects the global ride-hailing sector, where single-service platforms often struggle to achieve profitability without diversification.

The company’s gross order value doubling to $1.25 billion in fiscal 2025 demonstrates how adding complementary services can accelerate revenue growth beyond what would be possible in a single vertical.

Rapido’s planned entry into insurance distribution further illustrates how ride-hailing platforms can leverage their existing driver and customer networks to create additional revenue streams with minimal marginal costs.

2️⃣ Aggressive pricing remains the primary strategy for new entrants in food delivery

Rapido’s food delivery launch demonstrates how new market entrants continue to rely on price undercutting to challenge established players.

The company plans to charge restaurants commissions of just 8-15%, significantly below the 16-30% that Zomato and Swiggy charge 2.

For consumers, Rapido has implemented a simple fixed-fee model with Rs 25 for orders below Rs 400 and Rs 50 for orders above Rs 400, making the pricing structure transparent and competitive 2.

This approach aligns with a common pattern in food delivery globally, where new entrants sacrifice early profitability to gain market share against entrenched competitors.

The partnership with the National Restaurants Association of India suggests Rapido is also leveraging restaurant discontent with existing platforms’ high commission rates to build its initial restaurant network.

3️⃣ Startups face the paradox of increasing burn rate while approaching profitability

Rapido’s financial trajectory highlights the challenging balance between growth investments and financial discipline.

Despite narrowing its losses by 45% to Rs 371 crore in FY24, Rapido’s monthly cash burn has increased to $4-5 million in 2025 as it pursues expansion into new verticals 3.

Financial experts recommend startups maintain a runway of at least 12-18 months, making Rapido’s increased spending a calculated risk that likely necessitated the recent funding round 4.

Investors assess burn rate to evaluate a startup’s financial health, with high rates potentially leading to reduced valuations in future funding rounds unless they translate to proportional growth 3.

For platform businesses like Rapido, this spending pattern is particularly common before IPO preparations, as they invest heavily in customer acquisition and new verticals to demonstrate growth potential to public market investors.

Recent Rapido developments

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