Rapido Revenue Jumps Threefold In FY23, Loss Spikes 54%

Ride-hailing major Rapido posted a threefold growth in revenue in FY23, along with a significant widening in losses on the back of expansion and marketing.

Rapido, registered as Roppen Transportation Services Pvt., posted consolidated revenue from operations of Rs 443 crore in FY23, compared with Rs 144.7 crore in FY22, as it stepped out of the pandemic-hit FY21 and FY22.

The company's loss spiked to Rs 676 crore from Rs 439 crore, according to company filings accessed via TheKredible.

Rapido is in the business of providing mobility services, connecting users with two-wheelers and three-wheelers through its app.

The startup attributed the rise in revenue to the increased orders on its platform. It said the loss was a result of increased spending on marketing campaigns, technology infrastructure cost and support costs to fuel growth and improve the user experience on the company’s app.

"This led to an increase in total expenditure from Rs 1,172 crore to Rs 5,970 crore," it said in the filing.

While Rapido's mainstay business of two-wheelers and autos continues, it is to be seen how its cab business impacts its topline, which should be visible in the company's FY24 earnings.

Rapido's cab offering is based on two differentiators. Instead of a commission-based model, which has been a complaint for drivers across Uber and Ola, Rapido has introduced a subscription-fee-based model. For every Rs 10,000 in earnings, drivers will be subject to a subscription fee of Rs 500. For customers, Rapido promises the lowest price guarantee.

The company's major opportunity will continue to lie in bike taxis, Co-Founder Pavan Guntupalli told NDTV Profit earlier this month in an interview. "The ticket size is definitely larger (in cabs), but India has different classes. Cabs are regularly used only by a particular set of people, so we still see the major opportunity is going to be in bike taxis and autos, which are much more preferable modes of commute."