Rapido Success Story
Rapido is one of the fastest-growing ride-hailing companies in India, providing affordable, reliable, and convenient bike taxi services to its users. The company was founded in 2015 by Aravind Sanka and Pavan Guntupalli in Bangalore. Since then, it has grown to become a leading player in the ride-sharing market in India.
One of the key factors behind Rapido’s success has been its focus on providing a fast and efficient mode of transportation for short distances, which is often faster and more convenient than other forms of public transportation in Indian cities. With a fleet of over 150,000 registered bike taxis, Rapido operates in over 100 cities across India, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, and Kolkata.
Another factor that has contributed to Rapido’s success is its focus on affordability. The company offers competitive pricing for its services, which has made it popular among students, office-goers, and other budget-conscious consumers who are looking for a quick and affordable way to get around the city.
Rapido has also leveraged technology to streamline its operations and enhance the user experience. Its mobile app allows users to book a ride in just a few taps, track their ride in real-time, and pay for their ride using a variety of payment options. The app also provides users with safety features such as GPS tracking, SOS button, and ride-sharing options.
In 2021, Rapido raised $52 million in a funding round led by WestBridge Capital, which brought its total valuation to over $300 million. With continued investment in technology, marketing, and expansion into new cities, Rapido is poised for continued success in the competitive ride-sharing market in India.
Rapido - Company Highlights
| Startup Name | Rapido |
|---|---|
| Headquarters | Bengaluru, Karnataka, India |
| Sector | Mobility Tech |
| Founders | Pavan Guntupalli, Rishikesh SR and Aravind Sanka |
| Founded | November 2015 |
| Revenue/Turnover | $11.51 mn (Rs 87.9 crore in FY21) |
| Profit/Loss | Loss of $21.79 mn (Rs 166.3 crore in FY21) |
| Total Funding | $309.8 million (April 2022) |
| Valuation | $800 mn (as of April 2022) |
| Parent Organization | Roppen Transportation Services |
| Website | rapido.bike.com |
Highlights
Rapido – About
Rapido – Industry
Rapido – Founders And Team
Rapido – Startup Story
Rapido – Business Model
Rapido – Revenue Model
Rapido – Tagline, Slogan And Logo
Rapido – Funding And Investors
Rapido – Growth and Revenue
Rapido – Challenges
Rapido – Competitors
Rapido – Future Plans
Rapido - About
Rapido, an Indian online bike taxi aggregator headquartered in Bangalore, was established in 2015. With a presence in over 100 cities across India, Rapido operates in and around these locations. Boasting a daily rider base of more than 15,000 registered users, Rapido is a leading player in the ride-hailing industry.
Rapido - Industry
The bike taxi industry in India has shown remarkable growth in recent years. According to Allied Market Research, the market was valued at $50.5 million in 2021, and is expected to grow at a compound annual growth rate (CAGR) of 48.5% from 2022 to 2030. This growth is projected to take the industry to an impressive valuation of $1478 million by 2030.
Additionally, a report from Ola Mobility Institute (OMI) has highlighted the immense revenue potential of the bike taxi market in India. OMI, the policy research arm of ride-hailing giant Ola, has estimated the revenue potential of the industry to be a staggering $5 billion. These figures underscore the immense potential of the Indian bike taxi industry, making it a highly attractive segment for investors and entrepreneurs.
Rapido - Founders And Team
Pavan Guntupalli, Rishikesh SR and Aravind Sanka are the founders of Rapido.
Pavan Guntupalli is a co-founder of Rapido, having previously co-founded Roppen Labs. He holds a Btech degree in Electronics and Electrical Communications from the prestigious Indian Institute of Technology, Kharagpur. Guntupalli completed two Summer Internships at Reliance Communications and Breakthrough Management Group and is proficient in Korean, in addition to his native languages. Prior to joining Rapido, he worked as a software developer at Samsung Research India.
Rishikesh SR is also a co-founder of Rapido, with a BE degree in Computer and Informational Sciences from PES University. He is the founder of IMPStant and has received the ‘best project of the year award’.
Aravind Sanka, another co-founder of Rapido, holds a Btech degree in Mechanical Engineering from the Indian Institute of Technology, Bhubaneswar. He previously worked as a Finance Business Partner at Flipkart.com, following a Summer Internship at Tata Motors.
Rapido - Startup Story
Rapido was initially conceptualized as theKarrier, a logistics and supply-chain startup that catered to businesses. However, the founders, including Aravind Sanka, quickly realized that there was a greater potential for growth in the B2C space.
The shift from B2B to B2C meant that the company had to pivot to a different transportation model. They decided to focus on bikes, as cars would have been an added financial burden and would have also resulted in traffic and delays. With a small team of 15-20 people, the founders worked hard to sow the seeds of Rapido and create a platform that would offer a cost-effective and convenient mode of transportation for customers.
The founders’ vision was to hire two-wheeler owners and create an app, the Rapido captain app, that would allow them to register and verify their details with the company. This approach was different from that of competitors like Ola and Uber, who heavily invested in vehicles. The founders believed that their approach would make transportation more affordable and accessible for customers on a daily basis, especially in cities where traffic congestion is a major issue.
Today, Rapido has grown into one of the leading bike taxi aggregators in India, with a presence in over 100 cities across the country. The company’s innovative business model has been well-received by customers and investors alike, and it continues to expand and evolve, leveraging technology to offer safe, affordable, and convenient transportation solutions for customers.
Rapido - Business Model
Rapido offers a seamless ride booking experience through its user-friendly app, allowing customers to easily book a ride. Once a ride is booked, a skilled and trained rider, known as a “Captain,” arrives at the customer’s location. The fare structure for Rapido includes a base fare of ₹15, with an additional charge of ₹3 per kilometer traveled during the ride.
To become a Rapido Captain, interested individuals must register through the Rapido-Captain app, where they need to provide and validate their necessary documents. Captains can use their motorcycles, scooters, or e-bikes to provide rides to customers. However, the vehicle they use must be no older than the year 2012.
Rapido - Revenue Model
Rapido’s revenue model comprises two main aspects, which led to a significant 13X increase in revenue for the company in 2019. The first aspect is commission-based, where the company acts as a bridge between the “captains” and the riders and charges a commission of 20% on the total fare. The second aspect is B2C commission, where Rapido earns revenue by assisting logistics companies in delivering their goods. In both cases, brand advertisement plays a crucial role in amplifying brand reputation and driving growth.
Rapido - Tagline, Slogan And Logo
To promote the concept of individual travel, Rapido has coined the tagline “Ride Solo.” According to Aravind Sanka, 60% of the working population changes their mode of transportation three times a day for their daily commute. Hence, the founders aimed to provide a reliable, convenient, and cost-effective solution for short-distance travel. The logo of Rapido features three colors – white, yellow, and black – and was designed by shoby cc on Dribbble.
Rapido - Funding And Investors
As of April 15, 2022, Rapido has secured a total of $309.8 million in funding through 10 funding rounds. In the latest funding round, Series D, held on April 15, 2022, the company raised $175 million from a group of investors including TVS Motors, Shell Ventures, Westbridge Capital, and Nexus Ventures led by Swiggy. In the previous round, Series C, on August 16, 2021, Westbridge Capital, Nexus, and Yamaha invested $52 million in the company. The significant funding rounds showcase the investors’ confidence in Rapido’s business model and potential for growth.
| Date | Amount | Series | Investors |
|---|---|---|---|
| April 15, 2022 | $175 million | Series D | Swiggy, Westbridge Capital, TVS Motors, Shell 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, Ka Wing Kevin Kwong, Skycatcher |
| 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 | – |
Rapido - Growth and Revenue
Rapido, the Bengaluru-based startup, has witnessed rapid growth, which is evident in its financials. During FY21, the mobility firm increased its income by 54.4%, from INR 56.9 crore to INR 87.9 crore. Furthermore, the revenue from operations also increased to INR 75.6 crore, while expenses decreased to INR 254 crore from INR 301 crore. This led to a reduction in the company’s losses from INR 244 crore to INR 166.3 crore in the same fiscal year.
Currently valued at around $800 million, the company raised $175 million in a recent funding round led by Swiggy on April 15th, 2022. This is a significant increase in the company’s valuation, which was previously valued at $235 million during the last funding round. Some of the other notable growth highlights of the brand include a presence in over 100 cities in India, 15 million+ customers, and 1.5 million+ driver partners.
Rapido’s success is attributed to its reliable, convenient, and affordable ride-hailing services, which have attracted 5,00,000 captains, serving 10 million customers across 90 locations. In the previous year, the company reported a 12.5x jump in revenue, aided by interest income and capital gain from the sale of mutual funds. With ambitious goals to cross the million mark per day, the company continues to expand its reach and customer base.
Rapido - Challenges
Rapido, like any other startup, faces several challenges in its operations. Some of the significant challenges include:
Government Regulations: One of the primary challenges that Rapido faces is complying with various government regulations. The transportation sector is heavily regulated in India, and the company needs to ensure that it complies with all the rules and regulations set by the government.
Safety Concerns: Safety is a crucial aspect of transportation, and Rapido needs to ensure that both its captains and passengers are safe during the ride. The company has to ensure that all its captains have proper licenses and that they follow traffic rules.
Competition: Rapido faces stiff competition from various other ride-hailing services in India. The company needs to come up with innovative ideas and strategies to stay ahead of the competition.
Customer Retention: Customer retention is critical in the ride-hailing industry, and Rapido needs to provide its customers with a top-notch experience to retain them. The company needs to ensure that its app is user-friendly, and its captains provide quality services to the customers.
Captains’ Availability: Another significant challenge for Rapido is to ensure that it has enough captains available to meet the demand for its services. The company needs to maintain a balance between the number of rides and the number of captains available.
Overall, these challenges are not unique to Rapido, and many other ride-hailing companies face similar challenges. However, Rapido needs to address these challenges to maintain its position in the market and grow its business.
Rapido - Competitors
Rapido faces competition from various companies offering unique transportation solutions. RideAmigos specializes in providing trip planners, trip-tracking, and gamification to enhance the transportation experience. GoKid‘s focus is on sustainable transportation, providing a carpooling app for kids to reduce traffic and emissions. Vollo is a startup offering a comparison tool for bus searches, making it easier for users to plan their travels by comparing timetables and routes of different bus operators. Their mission is to provide the best travel experience to their customers.
Rapido, as a major player in the ride-hailing industry in India, faces competition from other companies providing similar services. Some of Rapido’s competitors in the Indian market include:
Ola: Ola is a ride-hailing company that operates in more than 250 cities across India. The company offers a range of ride options including cabs, auto-rickshaws, and bikes.
Uber: Uber is a global ride-hailing company that operates in India. The company provides a range of ride options including cabs, auto-rickshaws, and bikes.
Bounce: Bounce is a bike rental and ride-sharing company that operates in India. The company offers both short-term bike rentals and ride-sharing services.
Vogo: Vogo is a bike rental and ride-sharing company that operates in India. The company offers short-term bike rentals and ride-sharing services.
Yulu: Yulu is a bike-sharing company that operates in India. The company offers dockless bike-sharing services in select cities.
Dunzo: Dunzo is a hyperlocal delivery and transportation company that operates in India. The company offers ride-sharing services in select cities.
Quick Ride: Quick Ride is a carpooling company that operates in India. The company offers ride-sharing services for daily commuters.
These companies provide similar services and pose a challenge to Rapido’s market share in the Indian ride-hailing industry.
Rapido - Future Plans
The company’s primary objective is to enhance user experience by continuously updating its app with newer and more convenient features for both the riders and drivers. The founders also have plans to decrease rates and offer unique features to make rides faster and more efficient. Additionally, the company is considering introducing a subscription-based power pass for its frequent users to make their rides more affordable. These initiatives are aimed at improving customer satisfaction and maintaining the company’s position in the competitive market.
