IntrCity SmartBus lands $30M at $140M valuation to deepen its grip on India’s intercity travel market

IntrCity SmartBus, a tech-enabled intercity bus platform in India, has raised $30 million in funding to develop its community throughout smaller cities and cities within the South Asian nation. The all-equity Collection D spherical, led by A91 Companions, values the Noida-based startup at $140 million post-money.

Intercity journey is accelerating in India as extra folks migrate from smaller cities to metropolitan cities for work and schooling.

To satisfy this demand, New Delhi has considerably expanded the nation’s freeway infrastructure. The nationwide freeway community has increased by over 60% previously decade, from 56,723 miles to 90,847 miles, based on Indian authorities information.

Railways, whereas intensive, stay capacity-constrained and can’t hold tempo with rising inter-state journey demand. That makes long-distance highway journey a vital different. But, state-run intercity bus companies are restricted and sometimes fall quick on reliability and luxury — a spot IntrCity SmartBus goals to fill.

In contrast to conventional operators, IntrCity SmartBus runs on an asset-light mannequin by partnering with native bus house owners and equipping their automobiles with proprietary {hardware} for real-time monitoring, co-founder and president Kapil Raizada stated in an interview.

The startup additionally centralizes ticket reserving and route planning by way of its digital platform, which helps decide service frequency, pickup factors, boarding stations, and even seat configurations primarily based on demand.

To make sure security and consistency, IntrCity locations educated personnel — referred to as “captains” — on board every bus, Raizada advised TechCrunch. Most automobiles characteristic washrooms, and the corporate has additionally arrange air-conditioned boarding lounges staffed with crew to enhance the pre-departure expertise.

“All our buses are cloud-connected,” he famous. “There’s a bus working system, which we’ve got constructed up in-house, which screens and manages quite a lot of parameters, together with the CCTV, sound, and temperature ranges.”

Based in 2019, IntrCity SmartBus started as a web-based practice ticketing platform below the RailYatri model. That entry level gave the staff early insights into intercity journey conduct and unmet demand in road-based mobility, Raizada stated.

Immediately, RailYatri contributes simply round 10% of the startup’s complete income, whereas the SmartBus enterprise accounts for the remaining 90%, he added.

IntrCity SmartBus operates round 600 day by day bus journeys, transporting between 20,000 and 25,000 passengers every day — almost 700,000 per 30 days. The platform works with greater than 50 native bus operators and runs journeys averaging over 311 miles every. About 95% of its companies are in a single day, catering primarily to non-discretionary journey wants corresponding to work, schooling, or important appointments.

The startup’s typical passengers are between 20 and 45 years outdated, together with small enterprise house owners, trainers, authorities officers, gross sales professionals, and college students.

The startup follows a hub-and-spoke mannequin and has recognized 15 to 16 key financial hubs throughout India. It operates in 13 to 14 of those hubs, spanning 15 states. The community covers all of northern India — from Jammu to Uttarakhand — and far of the south, together with Karnataka, Tamil Nadu, and Andhra Pradesh.

“Numerous information crunching goes into understanding what the buyer wants,” stated Manish Rathi, co-founder and CEO of IntrCity SmartBus. “This contains selections like what sort of structure a bus ought to have — ought to it’s a full sleeper, or a hybrid with each sleepers and seats?”

IntrCity SmartBus grew its income by 67% year-over-year to ₹5 billion (roughly $57 million) within the final fiscal yr. The startup tasks income to surpass ₹7 billion (round $79 million) within the present yr. It has been “EBITDA-positive” for the previous couple of years and goals to turn into absolutely worthwhile this yr.

With the most recent funding, the startup plans to go “deeper and wider” by way of the nation and improve buyer expertise and security, in addition to improve its fleet administration expertise.

“One of many larger challenges in in bus mobility throughout the nation that folks have considerations about busses. It’s seen as a lesser cousin to trains and flights,” Raizada advised TechCrunch. “We need to make busses the popular mode of journey in India.”

Greater than 223 million intercity journeys had been made in India within the monetary yr 2025, based on a recent report by on-line bus ticketing platform RedBus. The sector added over 72,000 new intercity routes final yr, together with roughly 6,400 new buses — increasing capability by an estimated 265,000 day by day seats.

Alongside IntrCity SmartBus, India is seeing a wave of new-age intercity bus startups corresponding to ZingBus, LeafyBus, and FreshBus. European big FlixBus additionally entered the Indian market early final yr, signaling rising traction within the area. Nonetheless, IntrCity views competitors as secondary to execution.

“India is a really completely different beast in the case of highway journey. If one thing goes to go incorrect, it can go incorrect,” Rathi stated. “We’re not a network-first firm. We’re an operational-excellence-first firm.”