LeafyBus Secures $4.1Mn Funding To Add To Electric Bus Fleet

Intercity electric bus platform LeafyBus has raised $4.1 Mn in Pre-Series A funding from Enetra India, backed by Singapore-based Impact Capital Asset Management (ICAM). 

The Delhi-based startup aims to scale its EV fleet and boost its operations. LeafyBus founder Rohan Dewan told Inc42 that the startup plans to add 100 buses to its fleet within the next two years. 

Founded in 2024 by Dewan and Animesh Sharma, LeafyBus is an online EV bus operator intercity travel from Delhi to other locations in a 300 Km radius. 

LeafyBus currently operates between Delhi and Dehradun as well as Delhi and Agra, and plans to extend services to Chandigarh, Jaipur and other cities. Among intercity bus operators, it competes with the likes of NueGo, Fresh Bus, Yolobus, Zing Bus and FlixBus among others. 

LeafyBus claims to be the only bus operator running long-distance electric buses powered by a 360 kW fast-charging station. Currently, it sources the fleet from original equipment manufacturers (OEMs) such as JBM and Azad India Mobility. 

It is also planning to partner with Tata and Eicher to add to its EV fleet as well as enter new routes within the next two years. The startup currently operates on a hybrid model, with some buses being sourced from fleet operators on a lease basis. “We are a mix of asset heavy and asset light. We intend to keep our inventory close to 20 to 25% under our books, and the rest will be leased,” Dewan added.

On the financial front, the startup is looking to clock a turnover of INR 75 Cr- INR 80 Cr in FY26. 

Electric Buses Take Centre Stage

With the country aiming to achieve net-zero emissions by 2070 and reduce its dependence on fossil fuels, the electrification of public transport and commercial vehicles is emerging as a crucial pillar. 

Buses, in particular, are seen as a high-impact segment due to their widespread use in both intracity and intercity travel. Electric buses not only reduce greenhouse gas emissions but also help lower operational costs and improve urban air quality, making them an ideal solution for India’s transport future. 

The central government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes, particularly FAME II, have allocated substantial subsidies for electric buses and charging infrastructure. 

In addition, many states have introduced their own EV policies, offering incentives for fleet operators to adopt electric mobility. These policy initiatives have created fertile ground for private players to enter the market with innovative, clean transport solutions tailored to the Indian context.

EV bus operators like NueGo, Fresh Bus and LeafyBus are helping bridge the gap between government policy and public adoption by offering cleaner, quieter, and efficient transportation options. 

Last year, Bengaluru-based inter-state electric bus service provider Fresh Bus raised an additional INR 43.9 Cr in its Series A funding round led by Maniv Mobility to scale up its bus fleet by launching 150 electric buses. Besides this, in December last year, bp Ventures invested $9 Mn in the intercity mobility startup Zingbus in its Series A round.

The Indian EV market is projected to grow from $ 23.38 Bn in 2024 to $ 117.78 Bn by 2032, exhibiting a CAGR of 22.4% during the forecast period, as per a report by Fortune Business Insights. 

Besides the FAME allocation, the government is reportedly considering reducing the per unit subsidy for electric buses under the PM E-DRIVE scheme without raising the budgetary allocation. Cities such as Hyderabad, Surat, Bengaluru and Pune have together raised a subsidy demand for more than 15,000 units, as per an ET report.