More momentous celebrations are happening with Rapido, a ridesharing app headquartered in India, next year. It has announced its plans to begin preparing for its initial public offering by the end of 2026.
An initial public offering, or IPO, pertains to the process wherein a private company first sells its shares of stock to the public, hence its name. In other words, by listing its business as an IPO, it is transitioning from a private company to a publicly-traded one. It lets the company raise capital from a large number of investors by becoming listed on a stock exchange.
Amidst consistent growth
This announcement was made by Rapido’s co-founder Aravid Sanka. However, before turning into an IPO officially, the company is seeking to increase its market share further.
You know Rapido has maintained a 100 percent, or full year-on-year growth, over the past two years. They are confident that this will continue, so they plan to list the business as an IPO, a category that other businesses like Meta Platforms Inc., Facebook’s parent company, are part of.
Sanka stated, “We just want to grow further before thinking about markets. We have been growing 100 per cent in the last two years and want to continue that for a few more years before considering the IPO. We are making moves from both preparedness and business perspectives. We want to be there by the end of next year.”
Closer to the goals
He added that Rapido is very close to achieving complete operational profitability in the current fiscal year, adding that the app is making it more possible to adopt a robust business model and ensure cash burn would be at the minimum.
“We are operationally profitable, excluding some fixed costs. We don’t lose money anymore. The only major investment we make is in brand campaigns,” the co-founder pointed out.
Rapido’s business dealings have gone a long way since its founding. With an IPO on the horizon by the end of 2026, investors will be monitoring its financials, operational capabilities, and other affecting factors. But bridges aren’t crossed until someone gets there, so Rapido is keeping its fingers crossed that it achieves this status with an operational profit.
Starting as a bike taxi aggregator, Rapido is an Indian ride-hailing service which has expanded to include auto-rickshaws and cars. Rapido provides intra-city transportation solutions through its mobile app, connecting passengers with drivers for affordable and convenient rides, including connectivity. For more ridesharing news, you may share this story online.