Rapido, the bike-taxi startup, witnessed a surge of almost 54 percent in its losses during the last fiscal year (FY23), reaching Rs 675 crore compared to Rs 439 crore in FY22. The escalation in losses was primarily attributed to an increase in riders' cost, IT expenses, and employee benefits.
According to reports from Entrackr, incentives and charges paid to riders constituted 44 percent of the total expenditure, amounting to Rs 517 crore in FY23, a significant rise from Rs 214 crore in FY22.
Despite the mounting losses, Rapido experienced a remarkable threefold increase in revenue from operations, reaching Rs 443 crore in FY23 as opposed to Rs 145 crore in FY22, as indicated by the financial statements filed with the Registrar of Companies (RoC).
In a strategic move, Rapido recently entered the cab business by launching an intra-city, SaaS-based mobility solution named Rapido Cabs. With an impressive 60 percent market share in bike taxis, the startup expanded its reach with Rapido Cabs, introducing an initial fleet of 1 lakh vehicles.
Pavan Guntupalli, Co-founder of Rapido, highlighted the innovative approach of ensuring drivers only incur a minimal software usage fee, marking a significant shift in the industry.
Founded in 2015, Rapido now operates in over 100 cities and boasts more than 25 million app downloads. According to Tracxn data, Rapido has successfully raised a total of $324 million, with a substantial $180 million funding round in April last year led by online food delivery service Swiggy.
(With Agency Inputs)
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