Rapido Introduces ESOP Liquidation Program for Employees

Rapido, a leading ride-hailing company, has unveiled its inaugural Employee Stock Ownership Plan (ESOP) liquidation program, benefiting both current and former employees.

With this program, employees can immediately sell a portion of their vested ESOP units.

Founded in 2015 by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh, Rapido operates on a peer-to-peer (P2P) basis, linking customers seeking quick and affordable rides with independent two-wheeler riders, known as captains.

In September of the previous year, Rapido attained unicorn status after raising $200 million in a Series E funding round led by WestBridge Capital. To date, the company has raised over $500 million.

Rapido’s operational revenue surged by 46.3% to Rs 648 crore in FY24, up from Rs 443 crore in FY23. Additionally, the company significantly decreased its losses by 45%, which amounted to Rs 371 crore. The streamlined cost structure allowed Rapido to lower its quarterly loss to Rs 17 crore in Q2 FY25 from Rs 74 crore in Q2 FY24.

Data from various sources indicates that over 20 startups have initiated ESOP buyback, liquidity, and payout programs in 2024, collectively amounting to around $200 million. Swiggy topped the list by leading the ESOP buyback and liquidity initiatives with $65 million, followed closely by Whatfix at $58 million. In previous years, the ESOP buyback or liquidity amounts reached $802 million in 2023, $440 million in 2021, and $200 million in 2022.