Three’s Company: Meet the Minds Fueling Rapido’s Engine

Rapido, India’s leading bike-taxi service, was founded in 2015 by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh. 

Aravind Sanka

Aravind Sanka, an alumnus of the Indian Institute of Technology, Bhubaneswar, holds a degree in Mechanical Engineering. Before co-founding Rapido, he gained significant experience at Flipkart, working as a Management Trainee and later as a Supply Chain Finance Business Partner. His expertise in logistics and financial modeling played a pivotal role in his work. Aravind also co-founded “theKarrier,” an intra-city logistics aggregator aimed at optimizing mini-truck operations. (Aravind Sanka)

Pavan Guntupalli

Pavan Guntupalli is a graduate of the Indian Institute of Technology, Kharagpur, with a degree in Electronics and Electrical Communication. He began his career as a Software Developer at Samsung Research India, where he specialized in communication protocols. Pavan’s technical acumen extended further when he co-founded “Roppen Labs,” a venture focused on technology-driven solutions. (Pavan Guntupalli)

Rishikesh SR

Rishikesh SR, with a Bachelor’s degree in Computer Science from PES University, started his entrepreneurial journey while still in college. His first venture, IMPStant, was India’s pioneering IMPS-based wallet solution. Unlike conventional wallets, IMPStant allowed users to transact without preloading funds. Despite its early promise, the venture faced challenges in scaling and eventually closed. Undeterred, Rishikesh co-founded “theKarrier,” an intracity logistics aggregator aimed at organizing the highly fragmented and unregulated trucking industry. (Rishikesh SR)

The Founding Story

The trio’s entrepreneurial journey began with The Karrier, a logistics and supply chain venture aimed at streamlining goods transportation. Through this experience, they observed the daily challenges faced by urban commuters, including unreliable public transport and expensive auto-rickshaws. Recognizing the potential of two-wheelers to navigate congested city traffic efficiently, they envisioned a bike-taxi service as a solution to these urban mobility issues.

In 2015, they launched Rapido, aiming to provide affordable, fast, and reliable last-mile connectivity. Their combined expertise in engineering, technology, and business management played a pivotal role in developing a user-friendly platform that connects commuters with bike riders, known as “Captains.” This innovative approach not only addressed transportation inefficiencies but also created income opportunities for many individuals across the country.

A Market on the Move: How India’s Ride-Hailing Industry Is Accelerating

The ride-hailing market has transformed urban transportation by offering convenient, on-demand mobility solutions. Globally, this market was valued at approximately USD 199.14 billion in 2021 and is projected to reach around USD 432.16 billion by 2028, growing at a compound annual growth rate (CAGR) of 11.7% during the forecast period. (Grand View Research)

In India, the ride-hailing sector has experienced significant growth due to rapid urbanization, increasing smartphone penetration, and a preference for cost-effective transportation. In 2021, the Indian ride-hailing services market generated revenue of USD 1,481.8 million. This figure is expected to rise to USD 6,219.6 million by 2030, indicating a robust CAGR of 17.3% from 2022 to 2030. (Grand View Research)

The e-hailing segment, which includes services like those offered by Rapido, accounted for the largest revenue share in 2021. This segment is anticipated to maintain its dominance, driven by the increasing demand for convenient and efficient urban transportation solutions. Additionally, the rental segment is projected to register the fastest growth during the forecast period, reflecting a diversification in consumer preferences.

The growth of the ride-hailing market in India is further supported by the increasing urban population, which leads to higher demand for efficient transportation solutions. The market is also characterized by intense competition among key players, including Ola, Uber, and Rapido, each striving to expand their user base and service offerings.

Gearing Up: Rapido’s Mission to Redefine Urban Travel

Mission and Vision

Rapido aims to revolutionize urban transportation in India by providing accessible, efficient, and affordable mobility solutions. Its mission centers on easing daily commutes and enhancing last-mile connectivity for urban dwellers. The company’s vision is to innovate seamless commuting for all, directly at users’ doorsteps, by integrating top talent, disruptive technologies, and continuous innovation.

Problems They Solve

Rapido addresses several critical challenges in urban transportation. Firstly, it tackles traffic congestion prevalent in Indian cities by offering two-wheeler rides that can navigate through dense traffic more efficiently than traditional four-wheeled vehicles. This approach reduces travel time for commuters. Secondly, Rapido provides a cost-effective alternative to conventional cab services, making daily commutes more affordable for a broader population. Additionally, the platform offers flexible earning opportunities for individuals with two-wheelers, thereby contributing to employment generation.

Business Model

Operating on a Business-to-Consumer (B2C) model, Rapido connects customers directly with service providers through its user-friendly mobile application. Users can book rides by setting their pick-up and drop-off locations, after which a nearby rider, referred to as a “Captain,” is assigned to the trip. The app provides details about the Captain, including name and photo, ensuring transparency and safety for the user. Payments can be made via cash or digital methods, enhancing convenience.

For Captains, Rapido offers an accessible platform to generate income using their personal two-wheelers. The company encourages individuals aged between 18 to 50 years to join, with a preference for vehicles not older than 2010. Rapido is also actively seeking to increase female participation among its Captains, promoting inclusivity within its workforce.

Rapido’s revenue model primarily revolves around a commission-based system. The company charges a 20% commission on the total fare of each ride, serving as an intermediary between Captains and customers. Additionally, Rapido offers B2C logistics services, such as “Rapido Store,” facilitating the delivery of goods for logistics companies, which constitutes another significant revenue stream. 

Two Wheels, Three Wheels, and Endless Possibilities: Rapido’s Solutions Explained

Rapido, a pioneer in India’s bike-taxi services, has built a reputation as a reliable and versatile transportation platform since its inception in 2015. Over the years, Rapido has expanded its services to include auto-rickshaw rides, cab services, and logistics solutions, creating an ecosystem that caters to diverse commuting and delivery needs.

Bike-Taxi Services

Rapido introduced the bike-taxi concept in India, which has since become its flagship product. This service allows users to book quick, affordable two-wheeler rides that efficiently navigate through urban traffic. Bike taxis are particularly useful during peak hours, offering an economical and time-saving alternative to traditional modes of transportation. This service remains Rapido’s core strength, with a significant market share in the sector​​.

Auto-Rickshaw Services

Rapido diversified into auto-rickshaw services to cater to a broader audience. Through its app, users can hail auto-rickshaws within minutes, addressing the need for quick and reliable last-mile connectivity. This feature complements its bike-taxi services and reinforces its position as a multi-modal transportation solution​.

Cab Services

Rapido has ventured into the cab market to provide customers with more comfortable and spacious travel options. The service aims to offer affordable cab rides while maintaining the same reliability and convenience as its other offerings. By integrating cabs into its ecosystem, Rapido strengthens its presence in the competitive ride-hailing industry​.

Rapido Local

Rapido Local is designed for intra-city logistics, enabling individuals and businesses to send packages quickly and affordably. This service utilizes Rapido’s network of Captains (delivery partners) to ensure timely and secure deliveries, making it a reliable option for small businesses and personal deliveries alike​.

User-Friendly Mobile Application

The Rapido app is designed with a focus on user experience, featuring an intuitive interface that simplifies the booking process. Users can easily select their preferred mode of transport—bike, auto, or cab—enter their destination, and confirm the ride. The app provides real-time tracking of the assigned Captain, estimated arrival times, and fare details, ensuring transparency and convenience throughout the journey.

Safety Measures

Rapido prioritizes the safety of its users by implementing several features:

• Captain Verification: All Captains undergo a thorough verification process, including background checks and document validation, to ensure rider safety.
• Mandatory Helmets: Captains are required to provide helmets to passengers, promoting safety during bike rides.
• In-App SOS Button: The app includes an emergency button that allows users to quickly alert authorities or emergency contacts if needed.

Affordable Pricing

Rapido offers competitive pricing across its services, making it an attractive option for daily commuters. The fare structure is designed to be economical, with transparent pricing displayed upfront in the app, allowing users to choose the most cost-effective mode of transport for their needs.

Availability and Reach

With a presence in over 150 cities across India, Rapido has significantly expanded its reach, making its services accessible to a large user base. This extensive network ensures that users can rely on Rapido for their commuting and delivery needs in various urban and semi-urban areas.

Business Solutions

In addition to individual services, Rapido offers B2B solutions like Rapido Partner, which provides businesses with reliable delivery services. This initiative supports e-commerce, retail, and other sectors by offering flexible and scalable logistics options​.

Technological Integration

Rapido continuously integrates advanced technologies to enhance user experience and operational efficiency. Features such as real-time GPS tracking, digital payments, and AI-driven route optimization contribute to providing a seamless and reliable service for both riders and Captains.

Tech on Track: The Smarts Behind Rapido’s Seamless Rides

Rapido works as a ride-sharing platform that connects users looking for convenient urban transportation with a network of bike riders, auto-rickshaw drivers, and cab drivers known as “Captains.” The app leverages advanced technology to streamline the entire process, ensuring simplicity, safety, and efficiency.

When a user opens the Rapido app, they can easily enter their pick-up and drop-off locations. The app immediately calculates the estimated fare and displays available ride options such as bike taxis, autos, or cabs. Users can select their preferred mode of transport based on cost, convenience, or urgency.

Once a user books a ride, the app assigns a nearby Captain to the trip. Rapido’s system uses GPS-based algorithms to match riders with Captains who are closest to the pick-up point. This minimizes waiting time and ensures timely service. The app provides real-time tracking of the assigned Captain’s movement, allowing users to monitor their exact location and estimated time of arrival.

For Captains, the process is equally seamless. They receive ride requests directly on their dedicated app interface. Once they accept a booking, they are guided to the user’s pick-up location through navigation assistance integrated into the app. After completing the ride, Captains log the trip details, and their earnings are credited to their wallets within the app.

Payment on Rapido is flexible and hassle-free. Users can choose to pay via cash or use multiple digital payment methods, including UPI, credit/debit cards, or mobile wallets. This ensures convenience for a wide range of customers.

Rapido employs advanced technologies like GPS tracking, dynamic pricing, and data analytics to enhance service quality. GPS tracking allows precise navigation, while dynamic pricing adjusts fares based on demand and supply conditions. Data analytics helps predict peak times and high-demand areas, optimizing resource allocation and reducing waiting times.

Safety is a priority for Rapido. Before a ride begins, the app displays the Captain’s details, including their name, photo, and vehicle information, ensuring transparency. Riders can share trip details with family or friends through an in-app feature. Additionally, helmets are mandatory for bike taxi users, and the app includes an SOS button for emergencies.

Road to Glory: Rapido’s Impact on Urban Commuting

As of 2024, Rapido has expanded its services to over 100 cities across India, facilitating millions of rides and establishing a substantial user base. 

In terms of market share, Rapido has emerged as a dominant player in the bike-taxi segment. By mid-2022, the company held approximately 60% of the market share in this sector, outperforming competitors and solidifying its position as a leader in the industry. (AjuniorVC)

In October 2024, Rapido collaborated with IndoFast Energy—a joint venture between Indian Oil Corporation Limited (IOCL) and SUN Mobility—to deploy 10,000 Piaggio E-City Max electric autos equipped with swappable batteries. This initiative aims to reduce vehicle downtime and promote eco-friendly transportation. The rollout began in southern cities like Hyderabad and Bangalore, with plans to introduce over 1,000 electric vehicles (EVs) into public transport by December 2024. The partnership also includes establishing over 100 battery-swapping stations in Hyderabad and more than 200 in Bangalore by the end of 2024. (Economic Times Auto)

In April 2022, Rapido entered into a strategic partnership with TVS Motor Company to expand its reach in the mobility and hyper-local segments. This collaboration leverages TVS Motor’s expertise in two-wheeler and three-wheeler vehicles, encompassing both internal combustion engine (ICE) and electric vehicle (EV) segments. The partnership enhances Rapido’s fleet capabilities and service offerings. (Economic Times)

Rapido has also collaborated with RACEnergy, a pioneer in deep technology for battery swapping, to deploy electric autos across the country. This integrates RACEnergy’s advanced battery-swapping technology into Rapido’s platform, enhancing the efficiency and convenience of electric vehicle operations. (Economic Times Auto)

Fueling the Future: How Investors Have Powered Rapido’s Journey

Rapido has secured significant funding over the years, making it one of the most well-funded startups in India’s ride-hailing sector. The company has raised a total of $529 million across 12 funding rounds, attracting investments from 92 investors, including 59 institutional investors and 33 angel investors. The funding journey began in 2015 with a seed round of $181,000, backed by institutional investors such as Sol Primero and Outbox Ventures, along with angel investors like Nikunj Jain. (Tracxn)

In its Series A round in April 2016, Rapido secured $1 million, with support from Astarc Ventures, Tessellate Ventures, and notable angel investors like Pawan Munjal and Anupam Mittal. This funding was pivotal in scaling its operations during the early stages.

The company’s Series B rounds, spanning from 2017 to 2020, saw significant growth in investment. Rapido raised $3.1 million in 2017, followed by multiple rounds that brought in notable amounts such as $54.8 million in August 2019 and $56.6 million in June 2020. Key investors during this period included WestBridge Capital, Nexus Venture Partners, and BAce Capital.

The Series C and D rounds in 2021 and 2022, respectively, marked substantial growth in funding. Rapido raised $58.4 million in May 2021 and $180 million in April 2022. Investors such as Swiggy, TVS Motor Company, and Shell joined the existing backers. 

In 2024, Rapido’s Series E funding demonstrated its maturity as a market leader. The company raised $200 million in July, led by WestBridge Capital, Nexus Venture Partners, and Invus. The funding round further solidified its position, helping the company achieve unicorn status with a valuation exceeding $1 billion.

Rapido’s revenue growth reflects its expanding market presence. In FY 2023-24, the company reported revenue of ₹695.3 crore, a significant increase from ₹497.5 crore in the previous fiscal year.

Full Circle: Rapido’s Journey and the Road Ahead

Rapido is redefining urban mobility in India. As the largest bike-taxi aggregator, it offers fast, affordable, and convenient transportation. With services like bike taxis, autos, and cabs, Rapido caters to diverse commuting needs. Its focus on last-mile connectivity and low-cost travel makes it a preferred choice for millions across over 150 cities. The platform also provides intra-city delivery services through Rapido Local, making it a multi-faceted solution for both commuters and businesses.

The app uses advanced technology to simplify urban transportation. Features like real-time tracking, transparent pricing, and multiple payment options ensure a seamless user experience. Safety is a priority, with verified Captains, mandatory helmets, and an in-app SOS button. Beyond commuting, Rapido empowers individuals by creating job opportunities for thousands of Captains, helping them earn a steady income. The company’s commitment to sustainability is evident in its partnerships for deploying electric vehicles, making eco-friendly commuting accessible​​.

Rapido stands out for its innovation and ability to solve real-world problems. It bridges gaps in India’s transportation system, offering an alternative to overcrowded public transport and expensive cab services. By constantly evolving and expanding, Rapido has become a trusted name in the mobility sector​​. If Rapido’s journey intrigued you, there’s more to learn about the startup world. Check out other insightful articles on Venture Kites.