ixigo-Backed Fresh Bus Nets INR 43.6 Cr In Series A Funding

Bengaluru-based inter-state electric bus service provider Fresh Bus has raised INR 43.68 Cr (about $5.3 Mn) as part of its Series A funding round.

The company’s board had passed a special resolution to issue 2 equity shares and 63,825 Series A Compulsory Convertible Preference Shares at an issue price of INR 6,845 each to raise INR 43.68 Cr, as per regulatory filings.

The financing round appears to be ongoing and Fresh Bus is likely to secure more capital in Series A funding.

Entrackr reported the development first.

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

The startup claims 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.

Fresh Bus competes against the likes of GreenCell Express, IntrCity SmartBus, ZingBus and gogoBus in the online bus aggregator and operator market.

In October last year, Fresh Bus raised INR 7.5 Cr in its second seed funding round from a clutch of investors, including CRED founder and CEO Kunal Shah, TVS Motors MD Sudarshan Venu, and Rivigo CEO and founder Deepak Garg.

Prior to that, in February 2023, the EV bus startup raised INR 26 Cr ($3.1 Mn) in seed funding from ixigo.

The funding comes at a time when the demand for electric buses is on the rise in India and the government is keen on promoting electric buses to achieve its climate targets.

In a bid to shore up the EV infrastructure, the Centre greenlit the PM-eBus Sewa scheme in August 2023 to deploy 10,000 ebuses across 169 cities with a total outlay of INR 57,000 Cr.

According to a report by Mordor Intelligence, the Indian EV market is projected to grow at a CAGR of 22.9% to $120 Bn by 2030 from $34.8 Bn in 2024.

Last year, GreenCell Express raised debt funding of INR 3,000 Cr from state-owned REC Ltd.