Xiaomi In Talks To Again Bike Taxi App Rapido

Smartphone maker Xiaomi, together with a number of different current traders like China’s Shunwei Capital, are in talks to spend money on a $75-million spherical being raised by bike taxi software Rapido, in response to two sources aware of the event.

The deal is predicted to double the valuation of Rapido to over $300-350 million even because the startup continues to develop throughout the nation amid flat development within the cab phase.

The contours of the spherical are nonetheless being labored out and the startup might elevate extra capital — as a lot as $100 million — given its development, mentioned sources aware of the talks.

The startup can be in discussions to carry different new traders on board. “Rapido is rising actually quick and whereas they don’t seem to be reaching profitability, they’ve nonetheless been capable of preserve margins properly,” mentioned one of many sources talked about earlier.

Rapido had final raised about $55 million at a valuation of near $150 million from traders like Westbridge Capital, BAce Capital and Nexus Enterprise Companions earlier this yr. Xiaomi and Rapido declined to remark. Shunwei, which is the VC fund began by Xiaomi founder Lei Jun, didn’t reply to an emailed question from TOI.

Rapido was based by Aravind Sanka, Rishikesh S R and Pavan Guntupalli in 2015 and likewise counts Hero MotoCorp MD Pawan Munjal amongst its traders. From doing round 2.2 million rides a day in Might this yr, the startup is now doing 5 million rides each day throughout 80-90 cities in India, increasing its presence to smaller cities as properly.

As in comparison with cabs which price over Rs 20 per km, Rapido prices about Rs 10-11 per km, making it a way more reasonably priced choice. Whereas the proportion of car-owning households in India stands at round 11%, those that personal a two-wheeler is way greater at 36%, in response to an ICE 360° Survey 2016. India has over 210 million folks with two-wheeler licences.―Newpaper24