NTI (Mohan Bhulani) : Ride-hailing startup Rapido has reported a stellar 152% year-on-year (YoY) growth in its Gross Order Value (GOV) for the quarter ended September, reaching ₹2,461 crore, compared to ₹977 crore in Q2 FY24. The homegrown bike-taxi startup also significantly reduced its quarterly losses to ₹17 crore, down from ₹74 crore in the same period last year.
The company experienced a surge in ride orders, which doubled YoY to 207 million, translating to an average daily ride volume of 2.6 million. Rapido now serves 17 million passengers monthly through its network of 2 million drivers, according to a company statement.
Strategic Moves and Expansion
Rapido credits its growth to strategic cost optimizations, achieving a 50% reduction in fixed costs on a per-unit basis without increasing its overall budget. The company also broadened its service portfolio with the introduction of cab services in January, diversifying its offerings alongside bike taxis and auto-rickshaws.
“The introduction of a Software-as-a-Service (SaaS) model empowered driver-partners by enhancing their earning potential, resulting in a more satisfied and stable driver base,” Rapido stated. Its diversified services aim to meet the needs of a wider commuter base.
Unicorn Milestone
This growth comes two months after Rapido raised $200 million in a Series E funding round, propelling the startup into the unicorn club with a valuation of $1.1 billion. The round was led by WestBridge Capital, with participation from existing investor Nexus, and new investors Think Investments and Invus Opportunities.
The funds will be strategically allocated to expanding operations across India, scaling its technology platform, and enhancing service delivery across bike-taxis, autos, and cabs.
Aiming for Revenue Diversification
Rapido, founded in 2015, initially focused on bike taxis but has since expanded into auto and cab services. The company has established a presence in over 100 cities, including tier-2 and tier-3 locations, with plans to further grow its cab services.
According to Fortune India, Rapido aims to generate 15-20% of its total revenue from cab services by 2025, competing with established players like Ola, Uber, and InDrive. Its fleet of 1-1.5 lakh vehicles currently operates in key markets like Delhi-NCR, Hyderabad, and Chennai.
Co-Founder’s Vision
“With this new infusion of capital, we are eager to explore and expand our offerings, ensuring we meet the evolving needs of our customers,” said Aravind Sanka, co-founder of Rapido. “This investment will empower us to continue innovating and improving our services, allowing us to make significant strides in enhancing urban mobility for everyone.”
Rapido’s growth trajectory signals its ambition to redefine urban commuting through a robust and diversified service portfolio while maintaining financial discipline and operational efficiency.
