Ixigo-Backed Bus Startup Raises $10.5 Million – India Report

Electric digital intercity bus startup Fresh Bus has raised INR 875 million ($10.5 million) in its Series A funding round. FreshBus, which offers ticketing, real-time tracking of buses, loyalty program, among other services, was founded by Sudhakar Reddy Chirra. Chirra had built bus aggregator Abhibus which was acquired by Ixigo in August 2021 in a cash and stock deal.

Fresh Bus secured an investment of INR 160 million ($1.9 million) from Indian OTA Ixigo in its first seed funding round last year.

The company has a fleet of 20 electric buses and operates on two routes: Bangalore-Tirupati and Hyderabad-Vijayawada. Fresh Bus aims to use the funding to expand its route network by adding 15 new routes and expanding its fleet by launching 150 e-buses soon.

“We expect to scale to 1,000 electric buses pan-India over the next four years, generate skilled employment opportunities, and offer a green alternative for mass road transportation,” said Sudhakar Chirra, founder and CEO.

Why it Matters: The bus industry in India is expected to be valued at INR 1,040 billion ($12.4 billion) by 2026 at an annual growth rate of 6.64%, according to a report by Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat released this year. 

A report from travel consultancy firm Videc revealed that ground transport is the driving force behind India’s online travel market, with the rail and intercity bus categories accounting for 30% of the total market. 

The intercity bus market is set to increase 21%, to $1.9 billion from 2023 to 2026.

With a majority of Indians staying in secondary and tertiary regions and the middle class playing a more prominent role in the travel ecosystem, bus services are important in facilitating their movement to domestic and international destinations. 

In its first bus industry report, online bus ticketing platform RedBus said that two-thirds of the online bus ticket bookings in India came from the non-metro regions. It added that as many as 8,530 towns in India are connected by buses with 364,000 unique bus routes. 

Multiple Indian OTAs have partnered with online bus ticketing platforms – MakeMyTrip has partnered with RedBus, EasemyTrip with YOLOBus, and Ixigo with Abhibus.

With enhanced road infrastructure through creation of expressways, bus journeys are expected to become more convenient. 

The funding for the Fresh Bus points towards the positive investor sentiment on the industry, which is becoming more regularized with numerous players entering the space. 

Despite being the biggest means of inland transportation, the bus industry is not yet streamlined as compared to other means of transport. There is an increased effort to digitize and modernize this segment as well, with platforms like Fresh Bus, RedBus, and IntrCity SmartBus. 

MakeMyTrip Partners With Ministry of Tourism to Welcome Indian Diaspora

Online travel agency MakeMyTrip has partnered with the ministry of tourism to launch a special campaign for Independence Day to invite Indian diaspora abroad to rediscover India. The campaign, called ‘India: The homecoming,’ aims to highlight the transformation India has gone through over the years. 

The central message of the campaign calls for the diaspora to return to India to witness the changes that the country has undergone. For this, an online film has been created. The aim is to make Indian diaspora ambassadors for the Incredible India marketing campaign. 

This campaign is an extension of MakeMyTrip’s partnership with the tourism ministry last year. In 2023, for Independence Day, the OTA had created The Traveler’s Map of India to highlight more than 600 lesser explored destinations across the nation. 

Oyo Reports its First-Ever Net Profit 

Hotel aggregator Oyo has reported its first-ever net profit of about INR 2.29 billion ($27 million) during the 2024 fiscal year. The net profit financial year comes after the company reported eight consecutive quarters with positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). 

In its annual report, the company noted that among other geographies, it has seen growth across Europe, the U.S., Southeast Asia, and the Middle East. Following this, the company is planning to issue a Series G funding. It aims to acquire K&J Consulting, which operates premium rental homes company Checkmyguest group from Paris, France.

Oyo has recently seen its valuation drop from $10 billion in 2019 to $2.4 billion in its latest funding round. It raised INR 14.5 billion (approximately $175 million) in a down round, to support its growth and global expansion plans. The company’s valuation has now fallen below the total capital raised, estimated to be around $3.3 billion.

EaseMyTrip Endeavors to Be Among Top 3 OTAs Globally

Indian online travel agency EaseMyTrip has set an ambitious target for itself: becoming one of the top three OTAs across the globe in a few years. During the company’s earnings call, founder and managing director Prashant Pitti said that the company has a cost advantage against its competitors in the Middle East and Europe that is likely to help its growth internationally. 

Pitti also shared that it has entered into a strategic partnership with Google Wallet. As part of this, it aims to integrate all booking “necessities” into one single platform. Through this partnership, after booking tickets on EaseMyTrip.com and completing the web check-in process, users can add their boarding passes to Google Wallet.

The platform saw a 116% increase in its revenue from the hotels and holiday packages segment as compared to the same quarter last year, which is a part of its diversification strategy to decrease the company’s reliance on air segments alone.

IndiGo Enhances Connectivity to Singapore, Kuwait, Colombo

Budget airline IndiGo has announced a new route between Coimbatore and Singapore. Starting October 27, the airline will operate on the sector daily. 

IndiGo will also operate additional flights between Chennai and Singapore, Chennai and Colombo, and Mumbai and Kuwait from October. 

The airline has been expanding its operations as part of its goal to double the airline’s capacity over the next seven years, as CEO Pieter Elbers told Skift earlier this year. It is also foraying into premium air travel with plans to launch business class later this year. 

Sarovar Hotels Opens Golden Tulip in Agra

Sarovar Hotels has opened a Golden Tulip-branded hotel in Agra. The 54-key property marks the hotel chain’s 15th Golden Tulip hotel in the country. 

Sarovar now has 14 hotels in the state of Uttar Pradesh, including Royale Sarovar Portico in Agra, which debuted last year. 

Sarovar is one of the fastest-growing hotel chains in India. Earlier this year, Sarovar Hotels managing director Ajay Bakaya told Skift that the company had opened seven hotels by then in 2024 and was looking at opening another eight to 12.

In India, Sarovar expects to have 125 operational hotels in 2024, and plans to expand this number to 150 by 2025-end. 

(Skift India Report will not be published on Tuesday, August 20, as Monday is the Rakhi holiday.)