Rapido Posts Revenue Worth INR 443 Cr in FY23

Rapido Posts Revenue Worth INR 443 Cr in FY23

At the beginning of FY23, Rapido had Mopped Up $180 million from Swiggy, WestBridge, TVS Motor, Shell Ventures and Nexus Ventures. This substantial amount assisted Rapido in scaling up 3X and gave it more flexibility to control costs. The annual financial statements sourced from the Registrar of Companies show that during the previous fiscal year ending March 2023, Rapido’s revenue from operations surged 3X to INR 443 crore from INR 145 crore in FY22.

By providing bike taxis, autos and delivery services, along with its subscriptions and marketing income, Rapido generates its revenue. The primary source of revenue is the delivery services the company offers. The firm has a presence in more than 100 cities across India with more than 25 million downloads, over 1 million captains (riders) and 10 million customers. 

Rapido earns INR 25 crore from the interest of current investment, taking its total income to INR 497 crore during FY23. Incentives and charges paid to captains (riders) accounted for 44% of the overall expenditure. Also, the cost increased 2.4X to INR 517 crore in FY23 from INR 214 crore in FY22. During the fiscal year, employee benefits also saw a surge of 93.5%. The total expenditure increased by 96.31% to INR 1,172 crore in FY23 from INR 597 crore in FY22 due to the advertisement cum promotion, software & infrastructure, support service, legal fees, and other overheads. 

The hike in rider costs, employee benefits and IT expenses pushed Rapido’s losses by 53.76% to INR 675 crore in FY23 compared to INR 439 crore in FY22. The margin from its ROCE and EBITDA was -88.5% and -134.6%, respectively. The firm spent INR 2.65 to earn a rupee in FY23, on a unit level. 

In the ongoing year, the firm has also made its way to cab aggregation space by launching Rapido Cabs’. Rapido has initiated pilots in Hyderabad, Bengaluru and Delhi-NCR. The company is contemplating the SaaS model, instead of a commission-based system like Ola and Uber. In the SaaS model, drivers will need to pay a dynamic subscription fee based on how much they earn through the platform. 

The earnings of Rapido may have been impacted after the ban on bike taxes in Maharashtra and Delhi circles. The move to take on Ola and Uber via cab services may help the company consolidate its balance sheet. 

Thought of YFS on Rapido’s Financials

Your First Startup (YFS) views this as a mixed development for Rapido. While the rise in profits is a good sign, the mounting losses somewhat dampen the financials of the ride-hailing app service provider. It will have to curb losses by posting more gains across its businesses.