Rapido Gears Up for IPO by 2026, Eyes Operational Profitability
Bike taxi aggregator Rapido aims to initiate its IPO preparation by the end of 2026. The company has reported 100% year-on-year growth for the past two years and expects to achieve operational profitability in the current fiscal year. Rapido's current valuation stands at $2.30 billion, following Swiggy's 12% stake sale for Rs 2,400 crore. Early investors have seen 10-15 times returns on their investments. The company plans to expand its ride-sharing services to new cities and explore food delivery services.
*this image is generated using AI for illustrative purposes only.
Bike taxi aggregator Rapido is setting its sights on the public markets, with plans to initiate its Initial Public Offering (IPO) preparation by the end of 2026. This move comes as the company reports strong growth and nears operational profitability.
Growth Trajectory and Profitability
Rapido has maintained an impressive growth rate, with Co-Founder Aravind Sanka revealing:
- 100% year-on-year growth for the past two years
- Expectation to continue this growth rate before going public
- Near operational profitability expected in the current fiscal year
- Achieved profitability in one quarter last year
Valuation and Recent Developments
The company's valuation has seen a significant boost, largely due to recent corporate actions:
| Metric | Value |
|---|---|
| Current Valuation | $2.30 billion |
| Swiggy's Stake Sale | 12.00% |
| Sale Amount | Rs 2,400.00 crore |
Swiggy's decision to sell its stake was reportedly due to a potential conflict of interest, as Rapido plans to enter the food delivery market.
Investor Returns and Future Plans
Early investors in Rapido are reaping substantial benefits:
- Returns of 10-15 times their initial investments through secondary sales
Looking ahead, Rapido has outlined its expansion strategy:
- Extend ride-sharing services to new cities
- Explore food delivery services with a focus on affordability
Market Implications
Rapido's planned IPO and expansion into food delivery signal a shift in the competitive landscape of India's mobility and delivery sectors. The company's strong growth and approach to profitability may set a new benchmark for tech startups in the country.
As Rapido prepares for its public debut, investors and industry watchers will be keen to see how the company balances its growth ambitions with the push for profitability in an increasingly competitive market.
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