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Bike-taxi startup Rapido saw its losses surge nearly 54 per cent in the last fiscal year (FY23) to Rs 675 crore, from Rs 439 crore in FY22.

An increase in riders’ cost, IT and employee benefits were behind Rapido’s surging losses in the last fiscal year.

Incentives and charges paid to riders accounted for 44 per cent of the overall expenditure, reports Entrackr.

This cost was Rs 517 crore in FY23, from Rs 214 crore in FY22.

Meanwhile, the startup’s revenue from operations jumped 3 times to Rs 443 crore in FY23 from Rs 145 crore in FY22, according to its financial statements filed with the Registrar of Companies (RoC).

Last month, the bike-taxi startup announced its entry into the cab business, with launching an intra-city, SaaS-based mobility solution with Rapido Cabs.

With a 60 per cent market share in bike taxis, the startup has expanded its footprint with Rapido Cabs, introducing an initial fleet of 1 lakh vehicles.

“This pioneering approach ensures that drivers incur only a minimal software usage fee, marking a significant shift in the industry,” said Pavan Guntupalli, Co-founder of Rapido.

Rapido, which was founded in 2015, now operates in over 100 cities and has over 25 million app downloads.

According to the data available on Tracxn, Rapido has raised $324 million in total.

In April last year, the company raised $180 million led by the online food delivery service Swiggy.