Rapido's ad expenses surges to Rs 252 crore in FY25: Report

Ride-hailing startup Rapido narrowed its losses in the 2025 fiscal year as revenue climbed sharply, underscoring a shift in the company’s business mix toward delivery and subscription-led growth, according to data reported by Entrackr.

The Bengaluru-based company posted a loss of Rs 258 crore in FY25, down from Rs 371 crore a year earlier. Operating revenue rose 44 percent to Rs 934 crore, compared with Rs 648 crore in FY24, reflecting expansion beyond its core ride-hailing operations.

Rapido has traditionally relied on commissions from rides across two-, three- and four-wheelers, but that platform-led income declined in FY25. Revenue from ride commissions fell 23.5 percent to Rs 277 crore, accounting for 29 percent of total revenue during the year, the report said.

Instead, delivery services emerged as the company’s largest revenue stream. Revenue from deliveries, which includes transporting food and parcels through its network of captains, rose 28.3 percent to Rs 340 crore, overtaking passenger ride revenue.

Subscription income also expanded rapidly, climbing nearly fourteenfold to Rs 275 crore, driven by payments from riders and drivers for access to ride passes and platform benefits. Smaller revenue streams included passenger transportation services operated directly by Rapido, which generated Rs 21 crore, advertising income of Rs 16 crore from sponsored listings on the app, and other operating income of Rs 5 crore, largely from parking fees recovered from drivers.

Expenses continued to rise, though at a slower pace than revenue. Total costs increased 18.3 percent to Rs 1,261 crore in FY25, up from Rs 1,066 crore the previous year. Employee-related expenses grew 20 percent to Rs 207 crore.

The company also earned Rs 69 crore in interest income from investments, taking its total income to Rs 1,003 crore in FY25, nearly double the Rs 579 crore reported a year earlier. Spending on advertising and promotion stood at Rs 252 crore, while research and development expenses were Rs 108 crore during the year.