Rapido IPO update: What co-founder Aravind Sanka said about the public issue

Rapido IPO: Ride-hailing services provider Rapido is looking to start the listing process by the end of 2026, as the company is expecting to maintain its growth rate of 100% year-on-year (YoY) for the next few years.

"We just want to grow further before thinking about markets. Right now, our idea is how do we grow further... We have been growing 100% in the last two years. We want to at least continue that growth rate for a few more years and then think of the market," he said.

When asked if the bike taxi aggregator will prepare for an IPO after two years, Sanka said the timelines keep varying every quarter depending on the company's performance, but the firm wants to be ready irrespective of the way things are outside.

"We are making moves around that, both from a preparedness point of view, business point of view and everything that is expected. We are trying to do everything and we want to be there by the end of next year," he said.

Sanka said the firm expects to be very close to posting operational profit in the current financial year as it has no cash burn like competitors and it has been growing at the rate of 100% YoY.

"As a company, operationally, we are profitable, which is like removing some fixed cost. We are profitable overall. We don't lose money anymore. We invest in brand campaigns, which is one of the only investments we do from a growth point of view. Last year, one quarter we turned profitable. This complete year, we should be very close to that," he said.

Sanka claimed that Rapido's subscription fee as a percentage of revenues is much lower compared to its competition where it is passed to users and drivers.

A recent second share sale by food aggregator Swiggy Ltd pegged Rapido's valuation at USD 2.3 billion.

Swiggy owned around 12% stake in Rapido that it sold for around ₹2,400 crore, or about USD 270 million, in September, citing a potential conflict of interest with the bike taxi firm's intent to enter the food delivery business.

Sanka said the company is giving an exit to investors who are asking for it in the form of a secondary sale. He said the value of the stake of early investors lies in the range of 10-15 times over their investments.

An initial investor in the firm, Skycatcher, LLC Founder Sia Kamalie said his investments in Rapido are long-term, and the bike taxi aggregator is at an interesting stage of entering and expanding into new categories.

He said Rapido will expand the ride-sharing category in new cities where Uber and Ola do not operate and explore new categories such as food deliveries from an affordability perspective.

"It's in Rapido's DNA to do the most affordable categories as opposed to the current players. Everyone basically caters to the middle and upper class who can afford to spend much more. I think it's an exciting time for India's internet ecosystem because you have a player who's really dedicated to driving lower price points to expand the option," Kamalie said.

Skycatcher has participated in several funding rounds of the company since 2017. The company was founded in 2015 by Pavan Guntupalli, Rishikesh SR, and Sanka.