Rapido Hits Million Rides in 3-Wheeler Segment, Eyes EV Financing: Co-Founder

As the year 2024 progressed, Rapido, once known exclusively for its bike-taxi services, quickly adapted and expanded into a comprehensive mobility platform. With intensifying competition from other players like Namma Yatri and a growing presence from the Swiggy-backed startup, Rapido adjusted its strategy. The company focused on offering competitive pricing, an improved user experience through a more polished app interface, and a broader array of services.

Expansion into New Services

Rapido's expansion strategy involved venturing beyond bike-taxi services. The company introduced auto-rickshaw services in 2020, followed by cabs in late 2023, and ventured into last-mile delivery services in early 2024. This diversification has played a key role in maintaining its competitiveness in a crowded market.

Recent Funding and Investor Support

To fuel this expansion, Rapido successfully raised Rs 1,000 crore in funding from WestBridge. Furthermore, Prosus joined the list of investors, contributing an additional Rs 250 crore in a recent funding round. This influx of investment bolstered Rapido's financial position and supported its aggressive expansion strategy.

Impressive Financial Performance

Rapido's financial results have demonstrated consistent growth. In FY24, the company reported a revenue of Rs 648 crore, which marked a notable 46.3% increase from the previous year's revenue of Rs 443 crore. Notably, Rapido was able to reduce its losses significantly, from Rs 675 crore in FY23 to Rs 370 crore in FY24, showcasing a promising path toward profitability.

Introduction of the SaaS Model

In a bid to further optimize its operations and appeal to drivers, Rapido launched a new software-as-a-service (SaaS) model in 2024. Unlike traditional commission-based models where a fee is deducted per ride, Rapido’s SaaS platform operates with a nominal daily access fee. This enables drivers to keep all their earnings while only paying a small fee for access to the platform. The fees range from Rs 9 to Rs 29 per day, based on the demand potential of each city.

Plans to Scale SaaS and Enter New Markets

Rapido has ambitious plans for 2025, focusing on scaling its SaaS model and expanding into both larger metropolitan areas and smaller cities. The company aims to solidify its position in the ride-sharing market by providing greater flexibility and higher earnings potential for drivers, thereby attracting a larger base of users.

Exploring EV Financing Partnerships

In line with its growth ambitions, Rapido is also exploring partnerships with banks and non-banking financial companies (NBFCs) to introduce electric vehicle (EV) financing options. This initiative is designed to encourage the adoption of electric vehicles in Rapido's fleet, helping the company to be more sustainable while meeting increasing demand for eco-friendly transportation.

Insights from Co-Founder Pavan Guntupalli

In a recent exclusive interview with Moneycontrol, Rapido co-founder Pavan Guntupalli shared his insights into the company’s ongoing expansion efforts, ride volumes, and future goals. He also discussed the company’s aspirations to go public through an IPO and its roadmap for achieving profitability. Guntupalli's vision highlights the company's focus on scaling up and refining its services while targeting new market segments and optimizing its business model.

Key Takeaways

Rapido’s successful transformation from a bike-taxi aggregator to a comprehensive mobility platform has been supported by strong funding, strategic expansion into new services, and a focus on improving driver compensation through its innovative SaaS model. With continued growth, plans to adopt electric vehicles, and a potential IPO on the horizon, Rapido is positioning itself for long-term success in India’s competitive ride-sharing market.