Urban mobility startup Rapido has achieved a significant milestone in FY25, with its gross order value (GOV) increasing 2.5 times to reach $1.25 billion, up from $500 million the previous year. This remarkable growth is attributed to the company’s introduction of new services and strategic expansion into various cities.
Key Drivers of Growth
- Service Diversification: Rapido expanded its offerings beyond bike taxis to include auto-rickshaws and four-wheeler services, catering to a broader customer base.
- Geographical Expansion: The company aggressively entered new markets, increasing its presence across multiple cities in India.
- Increased Daily Orders: Rapido now handles between 3 to 3.5 million daily orders across all segments, including hyperlocal logistics.
Financial Implications
While the surge in GOV reflects Rapido’s growing market presence, it also comes with increased financial strain:
- Rising Cash Burn: The company’s monthly cash burn has escalated to ₹40–45 crore, up from ₹17 crore in Q2 FY25.
- Profitability Concerns: The heightened cash burn raises questions about the company’s path to profitability, especially as it plans to launch a food delivery vertical.
Market Position and Strategy
Rapido holds a 40% market share across various ride-hailing formats. Unlike competitors who operate on a commission-based model, Rapido employs a subscription model for drivers, potentially reducing long-term operational costs.
Funding and Valuation
In 2024, Rapido raised $200 million in a funding round led by WestBridge Capital, followed by an additional $30 million from Prosus in early 2025. These investments have propelled the company’s valuation to approximately $1.1 billion.
Future Outlook
Rapido’s impressive growth in FY25 underscores its potential in India’s competitive urban mobility sector. However, the company must address its rising cash burn and chart a clear path to profitability to sustain its growth trajectory.
