Putting up a brave face, Chavan asserted that despite Rane's loss, he will continue to lead the party.
"Rane gave a good fight and compared to October Assembly polls last year, Congress saw a marked improvement in the party's vote share in the constituency," he said.
He held party like All India Majlis-e-Ittehad-ul Muslimeen (AIMIM) in the fray as key factor that benefitted Shiv Sena and BJP.
Chavan said Congress will not be affected by the defeat, instead it would aggressively take on the BJP-Sena government in the state and at the Centre.
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The former chief minister congratulated NCP candidate and widow of late R R Patil Suman Patil for winning the bypoll to Tasgaon-Kavathe Mahankal constituency.
Congress had supported the NCP in the constituency.
NCP president Sunil Tatkare said Suman Patil's victory in Tasgaon was expected.
"We thank the people of Tasgaon for paying tribute to late R R Patil by electing his wife with a thumping margin," he said.
"Shiv Sena's votes were bound to increase because BJP was not in fray. Some BJP votes must have gone to the Sena," he added.