Rapido, the Bengaluru-based bike-taxi and auto aggregator that recently ventured into the cab industry, reported a significant surge in revenue from operations in FY23, reaching Rs 443 crore, a threefold increase from FY22’s Rs 144.7 crore. However, the company also experienced a widened loss, rising by 53.6% to Rs 674.5 crore in FY23 from Rs 439 crore in the previous financial year. This increase in losses was attributed to a substantial rise in expenses, which grew by 96.3% to Rs 1172 crore in FY23 from Rs 596.9 crore in FY22. The largest contributor to expenses was the category of incentive and related charges, accounting for 44.15% of total expenses, which surged by 142% to Rs 517 crore in FY23 from Rs 213.6 crore in FY22.
Rapido’s deliberate strategy to bolster its foundation by nearly doubling its expenditure to assemble a stronger team was evident in its financial performance. The company’s employee benefits expenses rose by 93.3% to Rs 206.8 crore in FY23, making it one of the major costs, up from Rs 106.9 crore in the previous year. Additionally, spending on advertising and promotional expenses increased by 36% to Rs 240 crore in FY23 from Rs 176.7 crore in FY22.
Despite the widened losses, Rapido’s total revenue, including interest income from current investments amounting to Rs 39.2 crore, reached Rs 497.4 crore in FY23. The startup derives its revenue from offering bike taxis, autos, and delivery services, supplemented by subscriptions and marketing income.
Pavan Guntupalli, Co-founder of Rapido, expressed enthusiasm about the firm’s performance in FY23, citing overwhelming response from partners and customers as a testament to its meteoric rise. In December, Rapido introduced Rapido Cabs, a zero-commission model for drivers via a SaaS-based platform, where drivers receive direct payments from customers upon paying a nominal subscription fee.
Rapido’s growth trajectory is supported by its recent Series D funding round, where it secured $180 million, with Swiggy leading the investment alongside TVS Motor Company. Previous backers, including Westbridge, Shell Ventures, and Nexus Ventures, also participated in this funding round. Since its founding in 2015 by Pavan Guntupalli, Rishikesh SR, and Aravind Sanka, Rapido has expanded its operations to over 100 cities across India, with more than 15,000 registered riders per day. In addition to bike taxis, Rapido now offers auto-rickshaw rides and rentals of two-wheelers in select cities.
