FreshBus, the Bengaluru-based EV bus startup backed by Ixigo, has successfully raised Rs 43.7 crore (approximately $5.23 million) in its Series A funding round. This marks the first significant funding achievement for the company this year.
The funding round exclusively reported by Entracker was led by Maniv Mobility, which contributed Rs 35.68 crore, with the remaining sum invested by Riverwalk Holdings.
The company has been in discussions to raise Rs 100 crore in its Series A round, indicating that this is an ongoing fundraising effort. With the recent investment, FreshBus has been valued at approximately $20 million post-allotment, a valuation that may increase with further capital injections.
Founded by Sudhakar Reddy Chirra, FreshBus was established in 2019 with a mission to revolutionize the bus travel industry by offering a modern, environmentally friendly alternative.
The company’s electric buses are designed to provide a smooth, quiet ride with a high level of comfort, aligning with their commitment to being carbon neutral. The online platform facilitates easy booking, aiming to make travel smooth and safe for passengers.
Sudhakar, who previously built and sold bus aggregator Abhibus to Ixigo in August 2021.
The startup has garnered support from three institutional investors: Ixigo, Maniv Mobility, and Riverwalk Holdings, along with angel investors like Kunal Shah. FreshBus has raised a total of $9.27 million across three funding rounds, with its first round held on November 22, 2022. This includes a Rs 7.5 crore investment from Kunal Shah, TVS Motors MD Sudarshan Venu, and Rivigo CEO and founder Deepak Garg in October last year.
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In the competitive landscape, FreshBus ranks second among seven competitors, including Zingbus, Orange Tours & Travels, and NueGo. Despite being relatively young, FreshBus is making significant strides with its innovative approach to sustainable transportation.
According to Tracxn reports, as of March 31, 2023, FreshBus reported an annual revenue of ₹14.5 lakh ($18.1K), showcasing the growth potential of this environmentally conscious startup. With the recent influx of funds and ongoing fundraising efforts, FreshBus is well-positioned to expand its operations and continue driving innovation in the electric bus sector.
