Rapido Transportation Services Private Limited, previously known as theKarrier, is an Indian ride-hailing service that has arisen as a trailblazer in the bike versatility space. Established in 2015 by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh, the organization has seen critical development and confronted different difficulties in its excursion. The history, business model, legal issues, funding, growth, financial challenges, and Rapido’s impact on the Indian transportation industry will all be examined in depth in this comprehensive business case study.
The founders of Rapido, who had attended prestigious universities like IIT and PESU, saw an opportunity in the transportation industry in 2015. At first named theKarrier, the organization zeroed in on giving imaginative bike versatility arrangements. The business changed its name to Rapido in 2018 and attracted prominent investors like Rajan Anandan and Pawan Munjal.
Rapido basically works as a bicycle taxi aggregator, offering administrations, for example, taxis, auto-rickshaw hailing, taxicab services, parcel delivery, and third-party logistics. Users can book rides through the Rapido app, which connects them with “Captains,” registered riders. The plan of action includes a base passage of ₹20, with an extra ₹3 charged for each kilometer of the ride. Skippers, who can utilize cruisers, bikes, or e-bicycles, go through an approval interaction through the Rapido-Captain application, guaranteeing consistence with vehicle age limitations (not more seasoned than 2010).
Financial Performance:
Rapido has encountered significant income growth, mirroring its rising fame and market presence. The company’s income increased by a remarkable 54.4% during the fiscal years 2020-2021, going from INR 56.9 crores to INR 87.9 crores. This strong development in income is demonstrative of Rapido’s fruitful methodology in taking advantage of the blossoming interest for bike portability arrangements in India.
Income Breakdown (FY21):
Total Income: INR 87.9 crores
Revenue from Operations: INR 75.6 crores
Expense Management:
Rapido showed productive cost administration during a similar financial period. The organization’s complete costs diminished from INR 301 crores to INR 254 crores, exhibiting an essential way to deal with cost control.
Profitability:
The viable administration of costs added to a striking decrease in misfortunes for Rapido. During the fiscal year, the company’s losses decreased from INR 244 crores to INR 166.3 crores. This positive pattern proposes that Rapido isn’t just developing its top line yet additionally effectively making progress toward accomplishing monetary supportability.
| Financial Metrics | Amount (INR / USD) |
|---|---|
| Total Income (FY 2020-2021) | INR 87.9 crores |
| Revenue from Operations | INR 75.6 crores |
| Total Expenses (FY 2020-2021) | INR 254 crores |
| Losses (FY 2020-2021) | INR 166.3 crores |
Funding & Valuation of Rapido:
Rapido’s vigorous monetary exhibition lines up with its progress in getting significant subsidizing across various rounds:
Total Funding Raised (as of April 15, 2022): $310.4 million
Latest Funding Round (April 15, 2022): $180 million (Series D)
Valuation:
The Series D financing round, drove by Swiggy, esteemed Rapido at a great $830 million. This valuation mirrors the certainty financial backers have in Rapido’s plan of action, development prospects, and its capability to rule the two-wheeler mobility segment in India.
| Date | Amount (USD) | Series | Investors |
|---|---|---|---|
| April 15, 2022 | $180 million | Series D | Swiggy, Westbridge Capital, TVS Motors, Shell Ventures, and more |
| August 16, 2021 | $52 million | Series C | Westbridge Capital, Nexus, Yamaha |
| August 18, 2019 | $55 million | Series B | Westbridge Capital |
| April 23, 2019 | $11.2 million | Series A | Nexus Venture Partners |
| January 24, 2019 | $7.09 million | Series A | Astarc Ventures, India Technology Fund, Integrated Capital, and others |
| March 1, 2018 | $4 million | Series A | Skycatcher |
| November 21, 2017 | $288.09K | Venture Round | Skycatcher, Thompson Taraz Managers |
| September 25, 2017 | $370.2K | Venture Round | – |
| October 19, 2016 | – | Seed Round | AdvantEdge Founders |
| May 1, 2015 | $22.2K | Seed Round | – |
User Base and Service Expansion:
Rapido has witnessed exponential growth in its user base and geographical presence:
Cities Served (2022): 100+
Registered Users (November 2019): 1 crore
Customers Served (reported): 15 million+
Driver Partners:
Rapido’s success is not only measured by its customer base but also by the engagement of driver partners:
Driver Partners (reported): 1.5 million+
Captains (registered riders): 500,000+
Future Objectives:
Rapido means to outperform the million rides each day mark, displaying aggressive development targets. The company’s positive trajectory in the fiercely competitive ride-hailing industry is demonstrated by its capacity to attract both users and driver partners.
Rapido – Product And Service:
1. Bike Pink: Catering to Women’s Safety
Rapido’s obligation to somewhere safe and secure and inclusivity takes a huge jump with the presentation of the ‘Bicycle Pink’ administration. Sent off in Chennai on September 4, 2023, Bicycle Pink is a particular contribution intended to cater explicitly to the transportation needs of ladies riders.
Cab Service:
In an essential move, Rapido enters the taxi ride-flagging down area on November 8, 2023. This extension denotes Rapido’s introduction to a space customarily overwhelmed by industry goliaths like Ola, Uber, BluSmart, and QuickRide. The underlying rollout of taxi administrations happened in Hyderabad, flagging Rapido’s desire to cut a specialty in the exceptionally serious Bengaluru market.
Challenges & Legal Issues:
In spite of its rapid growth, Rapido has experienced lawful difficulties in different Indian urban communities. Issues range from working without grants to altogether boycotts. For instance, in 2018, bicycles were seized in Coimbatore for working without a grant, and in 2019, the Madras High Court briefly prohibited Rapido’s tasks in Tamil Nadu. Comparable episodes happened in Bangalore, Assam, and Mumbai, featuring the administrative obstacles looked by the organization.
Rapido has confronted a few difficulties, including addressing wellbeing concerns connected with bikes and conquering negative insights. Innovative solutions were implemented by the company, including the introduction of speed-tracking mechanisms for Captains and the introduction of insurance from day one. During the Bengaluru drug bust, which involved two Dunzo and Rapido agents delivering drugs, Rapido was also under scrutiny.
Rapido’s excursion in the Indian transportation area mirrors an account of innovation, growth, challenges, and resilience. The organization’s obligation to changing bike versatility has disturbed the customary taxi industry as well as set out monetary open doors for large number of riders. As Rapido keeps on exploring administrative scenes and grow its services, its effect on India’s metropolitan transportation environment stays critical.
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