Rapido FY24: Losses Decline 45% YoY To INR 370 Cr

SUMMARY

The ride-hailing major attributed the reduced FY24 losses to a “disciplined approach to cost management” and by optimising key cost areas

Rapido clocked 44.5 Cr orders in FY24 versus 30.7 Cr orders in FY23 while GOV zoomed 1.8X YoY to INR 4,257 Cr in the fiscal under review

In September, Rapido bagged $200 Mn in a Series E round led by WestBridge Capital, which turned the ride-hailing startup into a unicorn with a valuation of $1.1 Bn

On the back of cost cutting measures across the board, ride hailing giant Rapido trimmed its losses by more than 45% year-on-year (YoY) to INR 370 Cr in the financial year 2023-24 (FY24) compared to INR 675 Cr in the previous fiscal year.

In a statement, the startup attributed the reduced losses to a “disciplined approach to cost management” and by optimising key cost areas.

Meanwhile, the company claimed that its losses reduced by more than 77% to INR 17 Cr in the second quarter (Q2) of the fiscal year 2024-25 (FY25) compared to INR 74 Cr during corresponding quarter last fiscal.

However, Rapido’s revenues jumped a hefty 1.5X to INR 648.1 Cr in FY24 as against INR 443 Cr in the year-ago period.

“Rapido’s impressive growth trajectory in FY24 was driven by a robust combination of service expansion and strategic marketing investments. Targeted marketing campaigns increased brand visibility and boosted customer acquisition, successfully expanding the user base and driving higher ride volumes…,” added the company.

On the operational front, key metrics saw a healthy YoY growth. As per the company, Rapido clocked 44.5 Cr orders in FY24 versus 30.7 Cr orders in FY23. Additionally, gross order value (GOV) zoomed 1.8X YoY to INR 4,257 Cr in the fiscal under review as against INR 2,419 Cr in FY23.

On a sequential basis, Rapido doubled the number of orders on its platform to 20.7 Cr orders in Q2 FY25 versus 10.6 Cr in Q2 FY24. On similar lines, GOV rose 2.5X YoY to INR 2,461 Cr in the quarter ended September 2024.

“… The number of ride orders doubled year-on-year to 20.7 Cr, reflecting both a larger user base and higher engagement levels. Alongside these gains, the company strategically optimised its fixed costs, achieving a 50% reduction on a per-unit basis without increasing its overall budget…,” added the ride-hailing company.

Rapido also said that its daily ride volume now stands at an average of 26 Lakh, catering to 1.7 Cr passengers monthly via nearly 20 Lakh drivers.

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapoido primarily offers bike taxi and auto transportation services. In December 2023, it also launched cab services in some cities. It also offers peer-to-peer delivery services via Rapido Local.

In September, Rapido bagged $200 Mn in a Series E funding round led by existing investor WestBridge Capital, which turned the ride-hailing startup into a unicorn with a valuation of $1.1 Bn.

Where Did Rapido Spend In FY24?

The mobility major’s total expenses declined 9.05% to INR 1.066 Cr in FY24 as against INR 1,172.1 Cr in the year-ago period.

Employee Benefit Expenses: Employee-related costs fell 16.61% YoY to INR 172.5 Cr in the fiscal under review as against INR 206.8 Cr in FY23.

Incentive & Others: Expenditures under this bucket fell 11% to INR 459.9 Cr in the fiscal ended March 2024 compared to INR 517.1 Cr in the previous year.

Marketing Expenses: The company spent INR 213.5 Cr towards advertising and promotional expenses in FY24, down 11.15% from INR 240.3 Cr in FY23.