Skift Take
Buses are key to last mile travel in India, connecting people from smaller Indian towns to international and domestic destinations. The funding reflects a positive outlook of investors towards the bus industry as more online players enter the segment.
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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.
https://twitter.com/alokebajpai/status/1626194605472632832?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1626194605472632832%7Ctwgr%5Ee88e10fd707c769d3f43d15bcade9cf856ac85c7%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fbc3-production-assets-cdn.basecamp-static.com%2F4789258%2Fembeds%2FeyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaEpJaWRuYVdRNkx5OWlZek12UlcxaVpXUXZNekk0TWpRNU16OWxlSEJwY21WelgybHVCam9HUlZRPSIsImV4cCI6bnVsbCwicHVyIjoiYXR0YWNoYWJsZSJ9fQ%3D%3D--5191cfe7c17b85faaf7cea9c4f061d366de994ce%2FfullThe 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