FreshBus Secures Funding To Start Premium Inter-City Electric Bus Services

SUMMARY

FreshBus has secured INR 26 Cr ($3.1 Mn) in seed funding from ixigo

The EV startup plans to start the bus services from Hyderabad and Bengaluru with 24 electric buses

It also looks to announce its first operational routes in March 2023

EV startup FreshBus has secured INR 26 Cr ($3.1 Mn) in seed funding from ixigo for launching premium inter-city electric bus services across India.

FreshBus shared that it will start the bus services from Hyderabad and Bengaluru with 24 electric buses. It also plans to announce its first operational routes in March 2023.

Founded in 2019 by second-time entrepreneur Sudhakar Reddy Chirra, FreshBus manages a full-stack platform.

The startup shared that its electric buses have noise-free air-conditioned cabins, IOT-enabled real-time air-quality and temperature monitoring, security CCTVs, personal charging docks, Wi-Fi, real-time tracking and alcohol checks.

“FreshBus was born out of a desire to address the pain areas of inter-city bus travelers in India. The startup aims to address these issues by emphasizing on quality and customer experience to make bus travel a hassle-free experience for all,” said Chirra.

Chirra also stated that a single FreshBus can save more than 90,000 liters of diesel and decrease 200 tonnes of carbon emissions in a span of one year.

Prior to founding FreshBus, Chirra had run bus aggregator platform Abhibus, which was later bought by ixigo in August 2021 in a cash and stock deal. The founder holds more than 15 years of experience in the bust-travel field and in managing tech-led businesses.

According to the startup, the inter-city bus travel space is currently pegged at $20 Bn and is expected to expand more in the next few years.

“There are nearly 100,000 intercity buses operating in the country, the majority of them are running on diesel, which is a major source of air pollution in urban areas. We are proud to be backing Sudhakar once more with a joint vision of a future where all intercity buses

in India will run on clean fuel. FreshBus buses will be able to cover up to 375 Km on a single charge with zero emissions,” said, Aloke Bajpai and Rajnish Kumar, cofounders of ixigo.

The startup looks to add a fleet of more than 1000 buses across PAN-India in the next 2-3 years.

In India, it competes with the likes of PMI Electro Mobility and NueGo.

As per a GrandView Research report, the country’s EV addressable market was pegged at over $220 Mn in 2020. The industry is projected to grow to $152.21 Bn by 2030 and expand at a CAGR of 94.4% by the forecast period (2021-30).