In this paper, we design the rateless coded uplink transmission in cloud radio access network (C-RAN) with two users, two remote radio heads (RRHs), and one baseband processing unit (BBU) pool under block fading channel. Each user sends the Raptor coded signals continuously until receiving ACK from the BBU pool. A distributed fronthaul compression scheme with LDPC code is proposed for the RRHs which can reduce the compression loss without increasing the fronthaul traffic, through leveraging the correlation between the received signals at both RRHs. To guarantee the compression performance, the LDPC code profile is optimized based on extrinsic information transfer (EXIT) analysis. Furthermore, the Raptor code profiles applied at the two users are also jointly optimized to improve the average system throughput. Simulation results show that the proposed transmission scheme with the optimized LDPC compression code and Raptor code can achieve good BER and throughput performance. INDEX TERMS Cloud radio access network, distributed fronthaul compression, LDPC code, Raptor code, degree profile optimization.