Bengaluru-based ride-hailing company Rapido is set to become cash flow positive in the next quarter, according to Co-founder and CEO Aravind Sanka.
In an interview, Sanka explained that at Rapido, every category at a segment level is already EBITDA positive.
“If we account for all the costs related to each vertical—categorized by cost to the segment—every category is profitable, including corporate costs. We are only a few months away from achieving overall cash flow positivity,” Sanka said.
He further mentioned that Rapido has doubled its gross merchandise value (GMV) annually while cutting losses by more than 50%. According to Sanka, the company’s GMV has exceeded one billion dollars.
Rapido plans to file its financial statements “anytime next month.”
Earlier this month, the company raised $200 million in a Series E funding round, reaching a post-money valuation of $1.1 billion, officially joining the unicorn club.
Sanka added that the new capital will be used to expand operations to nearly 250-300 cities within the next year, as the company currently serves over 100 cities in India.
“The focus is on launching new cities and deepening our presence in existing markets by introducing new use cases and overcoming barriers that prevent people from using ride-sharing services,” he noted.
Rapido has onboarded more than six million users each month in the last quarter, highlighting the company’s potential for further expansion.
The company also aims to grow in Tier II and III cities, particularly in the quick commerce segment, through partnerships with Swiggy and others.
Sanka stated, “We are working on the right integrations and expect to go live with most of these partners within the next quarter.”
Furthermore, Rapido is getting ready to float on Indian stock exchanges through an IPO. However, Sanka mentioned, “There isn’t a fixed timeline for filing, but we are taking all the necessary steps to be ready for a public listing.”
“We expect to be ready within the next 18 months,” he added.
Rapido is in the ride-hailing market alongside global behemoth Uber and Bhavish Aggarwal’s Ola.
According to an Entrackr report, as of March 2024, Rapido has surpassed Ola in terms of daily rides.
Sanka stated that Rapido now handles 2.5 million orders per day, making it the largest in terms of daily ride volume.
