IntrCity Raises INR 250 Cr To Expand Bus Network

SUMMARY

Mobility startup IntrCity SmartBus has secured INR 250 Cr (about $28.3 Mn) in its Series D funding round, led by A91 Partners

IntrCity cofounder Kapil Raizada told Inc42 that the capital will primarily be used to grow IntrCity’s bus network

Prior to this, the mobility startup raised INR 37 Cr in its Series C funding round, led by Mirabilis Investment Trust, in February 2024

Mobility startup IntrCity SmartBus has secured INR 250 Cr (about $28.3 Mn) in its Series D funding round, led by A91 Partners.

IntrCity cofounder Kapil Raizada told Inc42 that the capital will primarily be used to grow IntrCity’s bus network. The startup, which currently has presence in 15 states, aims to expand and deepen its network.

In a statement, IntrCity said that a part of the fresh funds will also be allocated for upgrading its fleet management platform, improving customer experience, and widening coverage to tier II and tier III cities.

Founded in 2019 by Raizada and Manish Rathi, IntrCity is a full-stack mobility platform that runs on a bus aggregator model. It operates long-distance buses on over 630 routes.

IntrCity parent Stelling Technologies also operates RailYatri, a digital platform to book train tickets.

With close to 600 buses, IntrCity competes with bus aggregators like FlixBus, LeafyBus, Zingbus, redBus, ixigo-backed gogoBus, among others.

Raizada said IntrCity plans to double the number of buses in its fleet in the next two years.

Prior to this, the mobility startup raised INR 37 Cr in its Series C funding round, led by Mirabilis Investment Trust, in February 2024. It counts the likes of Samsung Venture Investment Corporation, Nandan Nilekani’s family trust (NRJN), Omidyar Network India and Blume Ventures among its backers.

On the financial front, the cofounder said that IntrCity’s revenue surged to INR 500 Cr in FY25 from INR 300 Cr in the previous fiscal year. He expects the revenue to grow further to over INR 700 Cr in the ongoing fiscal year.

“The growth has been organic and profitable growth. As this company is growing, the scale and profitability is also improved,” Raizada said, without disclosing the profit number.

With rising disposable incomes and increase in tourism, intercity bus operators are seeing a strong growth in demand. These operators are raising fresh funding from investors to expand their fleets.

For instance, LeafyBus secured $4.1 Mn in September to scale its EV fleet and boost its operations. Last year, inter-state electric bus service operator Fresh Bus raised INR 43.9 Cr to scale up its bus fleet by launching 150 electric buses. bp Ventures also invested $9 Mn in intercity mobility startup Zingbus.