Fresh Bus, an all-electric intercity bus startup, has successfully raised Rs 87.5 crore ($10.5 million) in a Series A funding round led by Maniv, an international early-stage transportation-focused venture capital fund. The funding round also saw participation from Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings.
The Bengaluru-based company, founded by Sudhakar Reddy Chirra, plans to utilize the newly raised funds to expand its operations significantly. Fresh Bus aims to add 15 new routes and deploy 150 additional electric buses, bolstering its presence in the intercity travel market. The funds will also be directed towards enhancing the company’s technological capabilities and strengthening its team to support this rapid expansion.
Fresh Bus offers a range of services, including ticketing, real-time bus tracking, and a loyalty program, catering to the growing demand for organized and sustainable intercity travel. Since its inception, the company has transported over 400,000 passengers and has set ambitious goals to scale its electric bus fleet to 1,000 across India within the next four years.
Previously, Fresh Bus had garnered support from prominent industry figures, including CRED founder Kunal Shah, TVS Motors Managing Director Sudarshan Venu, and Rivigo CEO Deepak Garg. The company also secured Rs 16 crore ($2 million) in funding from ixigo, a leading travel booking platform, which acquired Chirra’s previous venture, Abhibus, in August 2021.
Fresh Bus faces competition from several players in the organized intercity travel sector, including IntrCity SmartBus, ZingBus, Yolobus, and gogoBus. However, with the new funding and a strong focus on sustainability and technology, Fresh Bus is well-positioned to expand its market share and lead the transition to electric mobility in India’s intercity travel industry.
