Rapido clocks million rides in three-wheeler segment, plans EV financing foray: co-founder Pavan Guntupalli

As 2024 unfolded, Rapido — once known solely as a bike-taxi aggregator — evolved into a full-fledged mobility platform. With competition heating up from players like Namma Yatri, the Swiggy-backed startup doubled down on its strategy: competitive pricing, a slicker app experience, and a broader range of services.

The company expanded beyond bike taxis, adding auto-rickshaw services in 2020, cabs in late 2023, and last-mile delivery in early 2024.

The firm has recently raised Rs 1,000 crore from WestBridge, with the addition of Prosus to its investor base through a Rs 250-crore funding round.

The company’s financial performance shows steady growth, with a revenue of Rs 648 crore in FY24, marking a 46.3 percent increase from Rs 443 crore in FY23. Rapido also significantly narrowed losses — to Rs 370 crore in FY24 from Rs 675 crore in the previous year.

Rapido is placing a major bet on its zero-commission, software-as-a-service (SaaS) model, which it launched in 2024.

Instead of charging a commission per ride, the SaaS model operates on a nominal daily access fee, allowing auto drivers to keep all their earnings and eliminate commission-based deductions. The one-time daily login fee, which ranges from Rs 9 to Rs 29, depends on the demand potential of each city.

In 2025, Rapido plans to scale its SaaS model and expand into both large and small cities. The company is also exploring EV financing partnerships with banks and NBFCs to accelerate the adoption of electric vehicles in its fleet.

In an exclusive interview to Moneycontrol, co-founder Pavan Guntupalli shared insights on the company's expansion, ride volumes, IPO aspirations, new markets, and profitability goals. Edited excerpts:

It's been more than a year since you changed your model to SaaS. How has it picked up? Is it yielding numbers?

Definitely. The progress has been phenomenal. As of today, we do more than a million rides in our three-wheeler segment daily. A significant role has been played by the SaaS model.

Drivers were burdened by the commission model earlier. Has the SaaS model alleviated that burden?

Yes. It not only reduces the burden on drivers, or as we call them, captains, but also brings down prices for users since we are foregoing commissions. Additionally, we are equipping captains with tools to set their own pricing, benefiting both users and captains. In four-wheelers, we are already a market leader in one city and conduct close to half a million rides across the country daily. This is within just a year of launch, and we are very confident about future growth. These are daily numbers. We are doing more than a million rides in autos daily across India, and in cabs, we are doing half a million.

What about the Gross Order Value (GOV)? Are there any figures to share?

Currently, we are doing 1.5 billion run rate, annual run rate.

You launched the Bike Pink initiative in Chennai and Kolkata. You announced that it will be launched in Karnataka? What is the timeline? 

We will be launching in Karnataka soon. It is part of our yearly plan. We are expanding to 20 more cities in Karnataka, creating 80,000 more jobs, out of which 25,000 will be for women. Bike Pink is an initiative to support this expansion.

What other new initiatives can be expected as part of your strategy?

We believe in leveraging existing infrastructure to create better solutions. Expect more ride-sharing options to improve affordability. Additionally, we are exploring EV financing and the broader electric mobility ecosystem, including distribution, financing, and direct vehicle partnerships.

Can you elaborate on financing? Will this be for captains looking to own electric vehicles?

Yes. Some captains join us without a vehicle, and we plan to offer a scheme enabling them to purchase electric vehicles instead of traditional ones.

Will this require an NBFC licence or will you partner with banks?

This will be a partnership-driven initiative. While we focus on commute solutions and job creation, we will work with banks, NBFCs, and new-age startups. We are also collaborating with 12 EV players nationwide to offer suitable vehicle choices for captains. We will leverage the ecosystem that Rapido already has for the empowerment of EVs.

You had an all-electric plan for bike taxis and three-wheelers. What's the pipeline for that?

We are working on multiple initiatives, such as financing partnerships and collaborations with EV manufacturers. We already have 1,000+ EVs operating in Karnataka and are taking further steps toward sustainability.

The recent funding round — was it Rs 250 crores from Prosus? And when did it materialise?

It was part of the previous round, a Rs 1,000 crore round. The Rs 250 crore was an add-on within the same round.

How will the funds be utilised? More city expansions?

Yes. We are market leaders in two- and three-wheelers and conduct half a million rides in four-wheelers. Expansion in the four-wheeler segment will continue. We have announced expansion into 500 cities, which we aim to complete within the year. We have identified markets with great potential, even though they are small. We will be going deeper into this segment.

Your cab services — are they nationwide or limited to specific cities?

We are currently in 35 cities across India.

Given that you’ve closed Series F, is an IPO the next step?

We are profitable and have positive EBITDA. We have sufficient capital, so an IPO is not a necessity right now. We will go public when the timing and conditions are right.

Any thoughts on international expansion? Your competitors are looking to expand into other markets like the US. 

Right now, India presents a massive opportunity. Our neighboring countries see 30 million rides per day, while Rapido alone does 3 million daily. There is still immense market potential in India.

On profitability—net losses have come down from FY23 to FY24. What is the timeline for net profitability?

We are investing in expansion and brand-building as we enter new categories. While the priority is on growth, our fundamental business is profitable. Bike taxis are net profitable, autos are EBITDA positive, and cabs are also EBITDA positive. We are making conscious investment decisions.

Have you gone live with BigBasket and other quick-commerce players?

We are actively doing quick commerce. We are leveraging our two-wheeler network for deliveries, very early but we will be expanding. We are right now doing 20,000 rides across India for quick commerce.

What are your thoughts on Karnataka’s Green Mobility Policy?

Any step toward sustainability is welcome. The shift will happen incrementally. E-rickshaws are already integral to Northern India’s transport system. This policy will create new opportunities for entrepreneurs and the mobility industry.