Business News

Rapido Claims 207 Million Rides in Q2 FY25, Surpasses Ola to Become Second-Largest Ride-Hailing Service

Rapido, the Bengaluru-based ride-hailing platform, has reported significant growth for the second quarter of fiscal year 2025 (Q2 FY25). The company achieved a 2.5x year-on-year increase in its Gross Order Value (GOV), reaching Rs 2,461 crore, up from Rs 977 crore in the same quarter last year. Additionally, Rapido saw a two-fold increase in its number of rides, reporting 207 million rides during this period.

Strong Growth and Expansion

Rapido claims it is now the second-largest ride-hailing service in India, overtaking Ola in the bike, auto, and cab segments. The company, which operates across multiple ride categories, including bikes, autos, and cabs, attributes this growth to its efficient cost structure and expansion into new services, including Software-as-a-Service (SaaS) offerings. It now serves approximately 17 million monthly passengers through a network of over 2 million drivers, with an average of 2.6 million rides daily.

Rapido’s strategic focus on lowering fixed costs has proven effective, as evidenced by a reduction in its quarterly loss. The company posted a loss of Rs 17 crore in Q2 FY25, a significant improvement from the Rs 74 crore loss it reported in Q2 FY24.

Rapido Q2 FY25 growth

FY24 Financial Report: Significant Revenue Growth

For the full fiscal year 2024 (FY24), Rapido’s revenue from operations grew by 46.3%, reaching Rs 648 crore, up from Rs 443 crore in FY23. The company also reduced its annual losses by 45%, reporting a loss of Rs 371 crore. During FY24, Rapido achieved nearly a two-fold increase in its Gross Order Value, rising to Rs 4,257 crore from Rs 2,419 crore the previous year. This increase was driven by a 1.5x rise in ride orders, with Rapido completing 450 million rides in FY24.

The company’s expansion and marketing investments have played a crucial role in boosting brand visibility, customer acquisition, and ride volumes.

Unicorn Status and Future Prospects

In a major milestone, Rapido recently achieved unicorn status after securing $200 million in a Series E funding round led by WestBridge Capital. This funding brings Rapido’s total capital raised to over $500 million.

With its continued focus on expansion and strategic investments, Rapido is positioning itself to challenge the dominant ride-hailing players in India. As the market grows, Rapido’s evolving service offerings, including its foray into SaaS, are expected to drive further growth. The company’s ability to streamline its operations, expand service categories, and grow its driver network gives it a strong competitive edge as it moves into the next phase of its growth.

Comments

Your email address will not be published. Required fields are marked *