Rapido’s Remarkable Growth in FY25: A Mobility Firm’s Journey

Rapido has been making headlines over the past year, particularly as it has generated impressive returns for its early investors, including TVS, Swiggy, Prosus, and Accel. The company gained further visibility when Dara Khosrowshahi, the CEO of Uber, openly recognised it as a significant competitor. In the fiscal year ending March 2025, Rapido reported a substantial 44% increase in revenue while successfully reducing its losses.

According to its consolidated financial reports acquired from the Registrar of Companies, Rapido’s operational revenue surged to Rs 934 crore in FY25, up from Rs 648 crore in FY24. The firm generates income primarily through commissions on rides conducted on its platform, which includes two, three, and four-wheel vehicles. This commission-based revenue made up 29% of the company’s total revenue in FY25, though it saw a 23.5% year-on-year decline, amounting to Rs 277 crore.

Growth in Delivery Services

In contrast, Rapido’s delivery segment, where customers pay for the transport of food and parcels via its captains, proved to be increasingly lucrative. Revenue from these delivery services rose by 28.3%, reaching Rs 340 crore during the fiscal year, thereby becoming the firm’s largest individual revenue source. It’s noteworthy that while passenger revenue was dominant in FY24, it was overtaken by the delivery business in FY25.

Subscription Income and Other Revenue Streams

Income from subscriptions, which comes from captains and users paying for ride passes and platform advantages, emerged as a significant growth factor, soaring nearly 14 times to Rs 275 crore. Likewise, income from passenger transport services, where Rapido directly controls vehicles, was reported at Rs 21 crore. Revenue from advertisements, which primarily involves sponsored listings on the app, reached Rs 16 crore, while other operational income, predominantly parking fees collected from drivers, stood at Rs 5 crore.

Additionally, the company accrued Rs 69 crore from investment interests, driving its total income to Rs 1,003 crore in FY25, compared to Rs 579 crore in the previous fiscal year.

Cost Dynamics in FY25

On the expenditure side, delivery charges and incentives given to captains constituted the largest costs, making up 40% of total expenses. This cost line rose by 8.7%, reaching Rs 500 crore in FY25. Moreover, employee benefit costs also saw an increase of 20%, amounting to Rs 207 crore during this period. Rapido allocated Rs 252 crore for advertising and promotions, with research and development expenses totalling Rs 108 crore in FY25. Various other costs, including rent and professional fees, led the company’s total expenses to reach Rs 1,261 crore in FY25, up from Rs 1,066 crore in FY24.

Net Loss Reduction and Improved Margins

The impressive revenue growth enabled Rapido to cut its net loss by 30.5% to Rs 258 crore in FY25 from Rs 371 crore in FY24. Its Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margins also showed improvement, standing at negative 13.58% and negative 19.59%, respectively. In terms of unit economics, Rapido incurred Rs 1.35 to earn Rs 1 in operating revenue.

Investment and Market Position

As per data from various startup intelligence platforms, Rapido has secured over $550 million in funding to date, including a $200 million round led by WestBridge that marked its unicorn status. Additionally, the firm has conducted multiple secondary transactions throughout the past year.

The revenue breakdown for Rapido serves as a clear indicator of where the most significant challenges lie within the business. While the goods delivery sector offers substantial growth potential and margins, the passenger segment remains increasingly contested, especially with the recent emergence of the Bharat taxi app. Analysts project that Rapido’s model could evolve into a more established marketplace model if regulations surrounding passenger transport soften at both state and central levels.

Rapido’s two-wheeler rides, in particular, have tapped into a new market, necessitating rule changes that reflect the company’s growth as a leader, a position that has transformed since it was merely a challenger two years ago. The question remains whether the company will continue to focus more on last-mile goods transport or regain momentum in the passenger segment; only time will reveal the trajectory.