In a significant move toward professionalizing its corporate structure, the three co-founders of Rapido—Aravind Sanka, Pavan Guntupalli, and Rishikesh S.R.—officially gave up their “promoter” status as of February 11, 2026.
The company’s board approved the reclassification of the founders as non-promoter public shareholders, following a trend among Indian unicorns like Swiggy, Zomato, and Delhivery.
Why Give Up Promoter Status?
The decision is a strategic step aimed at easing the compliance burden as the company prepares for its Initial Public Offering (IPO), targeted for FY27.
- Simplifying Compliance: Post-listing, “promoters” in India face stringent disclosure requirements, including the mandatory reporting of any pledged or encumbered shares. By shedding the tag, the founders reduce these ongoing regulatory hurdles.
- Flexible Board Structure: Under SEBI rules, if a company is “professionally managed” (without promoters), only one-third of the board needs to be independent directors if the chairperson is non-executive. If a promoter is the chairperson, half of the board must be independent.
- Remuneration Approval: For promoters, executive compensation often requires higher scrutiny and specific ratification by minority shareholders. Non-promoter status allows for smoother board-led approvals for founder salaries and ESOPs.
Criteria for Reclassification
According to regulatory filings, the board of Roppen Transport Services (Rapido’s parent entity) approved the move based on three key factors:
- Voting Rights: None of the co-founders currently hold more than 10% of the company’s total voting rights individually.
- Lack of Control: The founders no longer exercise absolute control over the company’s day-to-day affairs in a legal “promoter” capacity.
- Special Rights: There are no formal or informal arrangements giving the founders special rights that would traditionally be reserved for promoters.
IPO and Financial Health
The reclassification comes as Rapido reaches a mature financial stage.
- Unicorn Status: The company hit a $1.1 billion valuation in 2024 and was recently pegged at $2.3 billion following secondary share sales in late 2025.
- Revenue Growth: Rapido reported an operating revenue of ₹934 crore in FY25, a 44% jump from the previous year.
- Narrowing Losses: Its net loss narrowed to ₹258 crore (down from ₹371 crore), with the company targeting full operational profitability in FY26.
What Changes for the Founders?
While they are no longer “promoters,” their roles remain largely unchanged:
- Leadership: Aravind Sanka continues to lead the company as CEO.
- Daily Operations: The trio remains actively involved in scaling Rapido’s expansion into four-wheeler taxis and its high-stakes entry into the food delivery segment.
