The reclassification is an train in preparation for Rapido’s public market debut in FY27, mentioned an investor conscious of the corporate’s plans.
“The corporate will quickly begin its IPO course of and rent bankers,” the investor mentioned on situation of anonymity.
Rapido follows different new-age corporations the place founders have been reclassified as non-promoters to ease their compliance burden after itemizing, with advantages starting from beneficial board compositions to getting simpler approval for his or her compensation.
The board of Roppen Transport Providers Non-public Ltd, the corporate that operates Rapido, authorised the reclassification of Sanka, Guntupalli and Rishikesh as non-promoter shareholders on 20 August 2025. This adopted an software made by the co-founders on 13 August 2025.
“Whereas the Firm was nonetheless in its preliminary phases (the co-founders) have been categorised as promoters of the Firm. Since then, and because the Firm has grown and progressed, it’s now professionally managed, with the board of administrators of the Firm providing steerage on occasion,” the board famous in a letter to the Registrar of Corporations on 16 December. “At the moment, the operations and compliances of the Firm have been on auto-pilot mode just like every other well-established company group.”
The board mentioned it thought of three components earlier than approving the appliance – that every of the co-founders didn’t maintain greater than 10% of the corporate’s complete voting rights, that they didn’t train management over the corporate’s affairs and that they didn’t have any particular rights particularly attributable solely to them by way of formal or casual preparations.
Sanka continues as chief government officer of Rapido.
Rapido didn’t reply to Mint’s request for a remark.
Corporations with out promoters
Different founders who’ve given up their promoter tags embody these of Swiggy Ltd, Zomato’s mother or father firm Everlasting Ltd, FirstCry’s mother or father BrainBees Options Ltd, Delhivery Ltd, Coverage Bazaar’s mother or father PB Fintech Ltd and soon-to-be listed Aye Finance Ltd.
When founders grow to be non-promoters, it impacts how the corporate’s board consists and the way their compensation is set. If a non-promoter, non-executive director serves because the chairperson of the board of administrators, then solely a 3rd of the board must be composed of impartial administrators. If a promoter or an government serves because the chairperson, half of the administrators have to be impartial, mentioned Gaurav Pingle, an organization secretary primarily based in Pune.
“Additionally, in case of cost of remuneration to a non-promoter government director, there is no such thing as a obligatory requirement of acquiring approval of shareholders by particular decision,” Pingle defined.
As promoters, the compensation of the founders would should be ratified by minority shareholders, bringing extra scrutiny and uncertainty. Promoters would additionally need to disclose particulars of shares encumbered or pledged by them, Pingle mentioned. This rule shouldn’t be relevant to non-promoters.
Yashojit Mitra, a companion at Financial Legal guidelines Apply, mentioned promoters are usually thought of to be individuals answerable for the enterprise and affairs of an organization and face extra stringent compliance and disclosure necessities. So, founders who stop to fall throughout the definition of ‘promoter’ by divesting their stake typically apply to be de-classified as promoters as per the Regulation 31A of Sebi (LODR) Rules, 2015, he mentioned.
“This de-classification permits them the flexibleness to be like every other investor with fewer statutory restrictions and liabilities connected,” he mentioned.
Capital infusion
Based in November 2015, Rapido raised its final sizeable spherical of capital in 2024 when it secured $200 million in its sequence E funding spherical led by WestBridge Capital at a valuation of $1.1 billion, marking its entry into the coveted unicorn membership or a startup with a billion-dollar valuation. New traders together with Suppose Investments and Invus Alternatives and present investor Nexus Ventures participated within the spherical.
With the recent capital infusion, the Bengaluru-based firm outlined plans to develop operations throughout India and scale up its expertise platform to reinforce service supply. It additionally highlighted its plan to widen its operations throughout all classes, together with bike taxis, three-wheelers and taxicabs.
The corporate reported working income of ₹934 crore in FY25 in contrast with ₹648 crore a yr earlier. Its loss narrowed to ₹258 crore from ₹371 crore in FY24, as per an Entrackr report in January.
Final yr, Swiggy absolutely divested its ₹2,400 crore stake in Rapido, promoting the shares to Dutch funding agency Prosus NV and WestBridge Capital.
Rapido’s rise has been swift. From a two-wheeler ride-hailing service, it expanded into autos, automobiles, and most lately, meals supply underneath its “Ownly” model. By charging eating places virtually half the fee imposed by incumbents Swiggy and Zomato, Rapido is trying to wedge open India’s tightly managed food-tech market.
The transfer capitalizes on knowledge and operational insights it gained by way of its earlier partnership with Swiggy, the place Rapido’s fleet was typically deployed for last-mile supply.
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