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Rapido, the bike-taxi and auto aggregator that recently entered the cab industry, witnessed about a threefold increase in revenue from operations in FY23, although its losses widened due to a significant rise in expenses.

As per its recent financial statements, the Bengaluru-based company reported Rs 443 crore in revenue from operations in FY23, a 206% increase from the Rs 144.7 crore earned in FY22.

Its loss widened 53.6% to Rs 674.5 crore in FY23 from Rs 439 crore incurred in the previous financial year. This surge in losses was driven by a substantial 96.3% rise in expenses, totalling Rs 1172 crore in FY23, as opposed to Rs 596.9 crore reported in FY22.

The largest contributor to the firm’s expenses was the category of incentive and related charges, accounting for 44.15%. These expenses underwent a significant rise of 142% to Rs 517 crore in FY23 from Rs 213.6 crore in FY22.

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“In the course of the year, we have taken a deliberate step to fortify our foundation, nearly doubling our expenditure to assemble a more formidable team. Our incentivisation programmes have empowered our partners and captains, enabling them to thrive and for our ecosystem to grow,” Rapido had said in a statement in October last year, announcing its FY23 financial performance.

In FY23, Rapido saw a notable 93.3% rise in employee benefits expenses, making it one of its major costs at Rs 206.8 crore, up from Rs 106.9 crore in the previous year. Furthermore, its spending on advertising and promotional expenses amounted to Rs 240 crore in FY23, a 36% increase from Rs 176.7 crore in the preceding year.

The aggregator platform’s total revenue—including interest income from current investments amounting to Rs 39.2 crore—reached Rs 497.4 crore in FY23. The startup derives its revenue from offering bike taxis, autos, and delivery services, supplemented by subscriptions and marketing income.

“We are absolutely thrilled with the overwhelming response from our invaluable partners and loyal customers in FY2023, a testimony to the meteoric rise our company has experienced in the past fiscal year,” Pavan Guntupalli, Co-founder of Rapido, had said in a statement about the firm’s performance in FY23.

In December, the aggregator launched Rapido Cabs, introducing a zero-commission model for drivers via a SaaS-based platform, where drivers receive direct payments from customers upon paying a nominal subscription fee.

Rapido last secured $180 million in its Series D funding round, with Swiggy leading the investment alongside TVS Motor Company. Previous backers, including Westbridge, Shell Ventures, and Nexus Ventures, also participated in this funding round. Notably, Rapido had previously raised $130 million from diverse investors.

Founded in 2015 by Pavan Guntupalli, Rishikesh SR, and Aravind Sanka, Rapido is an Indian online aggregator. It operates in over 100 cities across India and has more than 15,000 registered riders per day. Rapido has expanded its offerings beyond bike taxis, with the launch of Rapido Auto (auto-rickshaw rides) and Rapido Rentals (rentals of two-wheelers) in select cities.