Ride-hailing startup Rapido significantly ramped up its advertising and promotional spending in the 2025 financial year, even as it narrowed losses and restructured its business model around delivery and subscription-led growth, according to financial data reported by Entrackr.
The Bengaluru-based company spent ₹252 crore on advertising and promotions in FY25, underscoring its aggressive push to scale user acquisition and brand visibility across its mobility and logistics offerings.
During the year, Rapido reported a net loss of ₹258 crore, improving from ₹371 crore in FY24. Operating revenue rose 44 percent year-on-year to ₹934 crore, up from ₹648 crore, reflecting expanding contributions from non-ride services.
Ride Commissions Decline as Business Mix Evolves
Rapido has traditionally relied on commissions from two-wheeler, three-wheeler and car rides as its primary revenue source. However, platform-led ride income declined sharply in FY25.
Revenue from ride commissions fell 23.5 percent to ₹277 crore and accounted for 29 percent of the company’s total operating revenue during the year, signalling a reduced dependence on passenger mobility.
Delivery Emerges as Largest Revenue Stream
Delivery services overtook ride commissions to become Rapido’s biggest revenue generator in FY25.
Revenue from food and parcel deliveries through its network of captains grew 28.3 percent to ₹340 crore, reflecting increased demand for last-mile logistics and Rapido’s growing focus on hyperlocal delivery partnerships.
Subscription Revenue Jumps Nearly 14-Fold
Rapido’s subscription business recorded its strongest growth during the year.
Income from rider and driver subscriptions rose nearly fourteen times to ₹275 crore, driven by payments for ride passes and platform benefits such as priority access and fare discounts. The company has increasingly positioned subscriptions as a recurring revenue engine.
Other Income Streams Add Incremental Growth
Additional revenue came from passenger transportation services operated directly by Rapido, which generated ₹21 crore, while advertising income from sponsored in-app listings stood at ₹16 crore.
Other operating income amounted to ₹5 crore, largely from parking fees recovered from drivers.
Costs Rise at Slower Pace Than Revenue
Total expenditure rose 18.3 percent to ₹1,261 crore in FY25 from ₹1,066 crore in the previous year. Employee-related expenses increased 20 percent to ₹207 crore, reflecting continued hiring and operational scale-up.
Research and development spending stood at ₹108 crore during the year, alongside the sharp rise in advertising and promotion costs to ₹252 crore.
Investment Income Lifts Total Earnings
Rapido also earned ₹69 crore in interest income from investments, taking its total income to ₹1,003 crore in FY25, nearly double the ₹579 crore reported in FY24.
The latest financials indicate that Rapido’s strategy of diversifying beyond ride-hailing into delivery and subscription services—backed by sustained marketing investments—is reshaping its revenue structure and improving its path towards long-term sustainability.
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