New Delhi: Bike-taxi startup Rapido witnessed a nearly 54 percent surge in its losses during the last fiscal year (FY23), reaching Rs 675 crore, up from Rs 439 crore in FY22. The escalation in riders’ cost, IT, and employee benefits contributed to Rapido’s mounting losses in the preceding fiscal year.
A report from Entrackr indicates that incentives and charges paid to riders constituted 44 percent of the overall expenditure. This expense amounted to Rs 517 crore in FY23, a significant increase from Rs 214 crore in FY22.
Meanwhile, the startup’s revenue from operations experienced a threefold increase to Rs 443 crore in FY23, compared to Rs 145 crore in FY22, as reported in its financial statements filed with the Registrar of Companies (RoC). (Also Read: Bengaluru Overtakes Delhi In Private Cars: Read Details)
In the previous month, the bike-taxi startup announced its foray into the cab business by launching an intra-city, SaaS-based mobility solution called Rapido Cabs. With a 60 percent market share in bike taxis, the startup expanded its footprint with Rapido Cabs, introducing an initial fleet of 1 lakh vehicles.
Pavan Guntupalli, the Co-founder of Rapido, asserts that this innovative approach ensures that drivers only incur a minimal software usage fee, marking a significant shift in the industry. (Also Read: Fresh IPOs This Week: Check Details)
Founded in 2015, Rapido now operates in over 100 cities and boasts over 25 million app downloads. According to data available on Tracxn, Rapido has raised a total of $324 million. In April of the previous year, the company secured $180 million in funding, led by the online food delivery service Swiggy.