Rapido plans to expand services across 500 Indian cities
What's the story
Mobility start-up Rapido, which is backed by WestBridge, has announced an ambitious expansion plan to extend its services across 500 cities in India.
The company currently operates in more than 120 cities and had raised a whopping $200 million last year.
The expansion will begin next month, with initial focus on states such as Karnataka, Gujarat, Tamil Nadu, West Bengal and Rajasthan.
Growth strategy
Phased expansion and daily ride statistics
Rapido's expansion will be phased, eventually covering states such as Punjab, Haryana, Uttar Pradesh, and Uttarakhand.
The company already enables an impressive 3.6 million rides daily.
"With over 1.3 crore Captains earning over ₹15,000 crore on the platform, our expansion to 500 cities is a testament to our commitment to empowering individuals and building a more connected India," said Rapido co-founder Pavan Guntupalli.
Company evolution
Rapido's journey and performance
Founded in 2015, Rapido started with two-wheeler ride-hailing before venturing into three-wheelers and cab services on a subscription basis.
Under this model, it charges driver partners a flat daily or weekly fee rather than a commission per ride.
The company saw a 46% growth in operating revenue for FY24, touching ₹648 crore, owing to its foray into new businesses and increased customer bookings.
Financial turnaround
Financial turnaround and market value
Rapido has successfully cut its net loss by 45%, reducing it to ₹371 crore from ₹674 crore in FY23.
On August 9, it was reported that the company had crossed the $1 billion mark in gross merchandise value (GMV).
Despite competition from established players like Uber and Ola, as well as new entrants like Namma Yatri, Rapido continues to thrive.