Rapido's revenue jumps 46% to Rs 648 crore in FY24, losses decline by 45% to Rs 371 crore

Bengaluru-based ride-hailing firm Rapido recorded significant financial progress in FY24, reporting a 46.3% increase in operating revenue to Rs 648 crore while cutting its losses by 45% from Rs 675 crore to Rs 371 crore, Entrackr reported. 

The unicorn startup credits its improved performance to effective cost management and expanded revenue streams in the competitive mobility market.

Strong growth in core ride-hailing services

Rapido’s core transportation services, spanning bike, auto, and cab segments, were major contributors to its revenue growth. Income from these services rose 48.4% to Rs 362 crore, comprising 55.9% of total operating revenue.

Gross platform income, which includes Rs 144 crore in customer discounts, reached Rs 505 crore. This growth trajectory allowed Rapido to edge out Ola, making it the second-largest player in India’s ride-hailing market after Uber, according to media reports.

With bikes making up over 50% of all rides, and autos accounting for 40% of the gross merchandise value (GMV), Rapido is strategically positioned across these high-demand segments.

This diverse platform approach is part of Rapido’s strategy to broaden its customer base and optimize revenue from distinct segments.

Diversified offerings fuel revenue growth

Beyond core ride-hailing, Rapido saw impressive growth in its delivery and subscription services, generating Rs 265 crore and Rs 19 crore, respectively, in FY24.

Delivery services grew by 39.5%, while subscription revenues surged by 171.4%, driven by demand from users seeking greater convenience and cost savings on regular rides.

By diversifying its offerings, Rapido has built a more resilient revenue structure, effectively balancing the variability in demand for ride-hailing.

Cost management key to narrowing losses

Rapido’s fiscal discipline helped control costs, with incentives paid to partners, its largest expense, reduced by 11% to Rs 460 crore, representing 43% of overall costs.

Employee costs dropped by 16.9% to Rs 172 crore, and marketing expenses decreased by 10.8% to Rs 214 crore. Total expenses stood at Rs 1,066 crore in FY24.

Funding strengthens Rapido’s unicorn status

In September 2023, Rapido achieved unicorn status with a $200 million Series E funding round led by WestBridge Capital.

The funding brought the startup's valuation to over $1.1 billion and added significant cash reserves for expansion. “Over the past year, we’ve experienced significant growth, with our daily rides surging to 2.5 million,” Rapido Co-founder Aravind Sanka stated.

Founded in 2015, Rapido has extended its reach to over 100 cities, including smaller tier 2 and tier 3 cities, as it seeks to serve a broader customer base.