Urban mobility startup Rapido saw its gross order value (GOV) more than double in FY25, reaching $1.25 billion, driven by the launch of new services, according to sources familiar with the matter.
However, this 2.5x increase from $500 million in FY24 has come at a cost, as the company has moved further away from profitability, with a noticeable rise in its cash burn in recent months.
“The company is fulfilling 3–3.5 million orders per day across its different platforms—two-, three-, four-wheelers and hyperlocal logistics—but this has come at the cost of deviating from its path to profitability,” one of the people cited above said.
“Overall, across ride-hailing form factors, Rapido has captured about 40% market share. In the four-wheeler segment, specifically, it has eaten into Ola’s share,” the person added.
Rapido launched its four-wheeler ride-hailing service in December 2023 and announced plans in January to expand the offering to 500 cities across India.
In 2024, the Bengaluru-based startup secured $200 million in a funding round led by WestBridge Capital, which valued the company at $1.1 billion. This was followed by an additional $30 million investment from Dutch investor Prosus in February 2025.
With this fresh influx of capital, Rapido has been aggressively increasing its spending to capture a larger share of the market.
Rapido’s monthly cash burn rose to $4–5 million (Rs 40–45 crore) in 2025, marking a significant shift from its earlier focus on reducing losses, according to the sources mentioned above. In contrast, during the July–September 2024 quarter, the company had managed to cut its losses to Rs 17 crore, down from Rs 74 crore in the same period the previous year.
“The burn is likely to increase further as Rapido steps up customer acquisition in ride-hailing and prepares to launch its food delivery vertical,” an investor aware of the developments said without raising any concern over the move.
“It hasn’t spent millions like its peers to build supply,” the person explained, citing Rapido’s subscription model that charges drivers a flat fee for access to customers—unlike Uber and Ola, which operate on a commission basis for four-wheeler ride hailing.
As first reported in March, Rapido is getting ready to launch its own food delivery service. The company has started recruiting talent from Zomato and Swiggy and is currently in discussions with Indian franchisees of major QSR brands like McDonald’s, KFC, and Pizza Hut, along with other high-volume cloud kitchen operators and quick-service restaurant chains.
It’s worth noting that Swiggy, a publicly listed food delivery leader, is one of Rapido’s investors, and Prosus holds investments in both companies.
A senior executive from the food delivery sector cautioned that Rapido’s achievements in ride-hailing might not directly carry over to food delivery, which requires different operational strengths. “In ride-hailing, there’s minimal interaction between stakeholders. In food delivery, restaurants expect a point of contact to resolve issues. Rapido will need to build that muscle,” the executive said.
Rapido, founded in 2015 by Arvind Sanka, Pavan G, and Rishikesh SR, has been handling food delivery for Swiggy since the latter invested in the company in 2022.
“There’s a learning curve Rapido will have to navigate in this segment,” the investor mentioned earlier added.
Rapido’s evolution from a mobility startup to a potential player in the food delivery space marks a significant expansion in its business strategy. While its rapid growth in ride-hailing and strong investor backing provide a solid foundation, entering the food delivery market presents new operational challenges.
With strategic hires and partnerships underway, Rapido is positioning itself to compete—but as industry experts note, success in this segment will depend on its ability to adapt and build the necessary infrastructure to meet the unique demands of food delivery.
