Ixigo-Backed Bus Startup Raises $10.5 Million - India Report

Electric digital intercity bus startup Fresh Bus has raised INR 875 million ($10.5 million) in its Series A funding round. FreshBus, which offers ticketing, real-time tracking of buses, loyalty program, among other services, was founded by Sudhakar Reddy Chirra. Chirra had built bus aggregator Abhibus which was acquired by Ixigo in August 2021 in a cash and stock deal.

Fresh Bus secured an investment of INR 160 million ($1.9 million) from Indian OTA Ixigo in its first seed funding round last year.

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The company has a fleet of 20 electric buses and operates on two routes: Bangalore-Tirupati and Hyderabad-Vijayawada. Fresh Bus aims to use the funding to expand its route network by adding 15 new routes and expanding its fleet by launching 150 e-buses soon.

“We expect to scale to 1,000 electric buses pan-India over the next four years, generate skilled employment opportunities, and offer a green alternative for mass road transportation,” said Sudhakar Chirra, founder and CEO.

Why it Matters: The bus industry in India is expected to be valued at INR