NEW DELHI: Rapido, the ride-hailing platform based in Bengaluru, has reportedly halved its losses to Rs 370 crore for FY24, down from Rs 675 crore the previous year. This marks the third consecutive year of losses for the company, which posted a loss of Rs 440 crore in FY22.
Despite the losses, Rapido’s revenue grew significantly, reaching Rs 648 crore in FY24, a 46.3% increase compared to Rs 443 crore in FY23. The company also highlighted a substantial rise in its Gross Order Value (GOV), which nearly doubled to Rs 4,257 crore in FY24 from Rs 2,419 crore in FY23.
This growth was driven by a 1.5x increase in ride orders, reaching nearly half a billion rides in FY24, indicating a growing user base and stronger market presence.
In Q2 of FY25, Rapido improved its financial performance further, reducing losses to Rs 17 crore from Rs 74 crore in the same period the previous year. The company reported a 2.5x year-on-year growth in GOV to Rs 2,461 crore, up from Rs 977 crore in Q2FY24. Ride orders doubled to 207 million in the quarter, while the company optimised fixed costs, cutting them by 50% on a per-unit basis without increasing its overall budget.
Rapido's cost-saving measures also included a 16.9% reduction in employee costs to Rs 172 crore and a 10.8% decrease in marketing expenses to Rs 214 crore in FY24. Total costs, including technology, support services, legal, and rent, amounted to Rs 1,066 crore.
The company’s bike taxi service continues to drive growth, accounting for over 50% of total rides. This expansion in service offerings, combined with strategic marketing efforts, has significantly boosted the platform’s visibility, customer acquisition, and ride volumes.
Founded in 2015 by IIT alumni Aravind Sanka, Pavan Guntupalli, and PESU alumnus SR Rishikesh, Rapido was initially launched as "Karrier" after the founders faced challenges with commuting in Bangalore, one of India’s most traffic-congested cities. They realised that two-wheelers, such as motorcycles and scooters, could navigate the city's dense traffic more efficiently than cars, making them a preferred mode of transport for short-distance travel.
Rapido operates on a peer-to-peer business model, connecting customers who need a ride with independent two-wheeler riders or captains who are willing to provide the ride. In December 2023, it also launched cab services in some cities.
In September, Rapido bagged USD 200 million in a Series E funding round led by existing investor WestBridge Capital, which turned the ride-hailing start-up into a unicorn with a valuation of USD 1.1 billion.
(With inputs from PTI, Online Desk)