IntrCity SmartBus Secures INR 250 Crore Series D Funding Led by A91 Partners

IntrCity SmartBus, a prominent player in the intercity bus travel sector, has successfully closed its Series D funding round, securing INR 250 crore (about $28.3 million). The round was led by venture capital firm A91 Partners.

Kapil Raizada, co-founder of IntrCity, stated that the newly acquired funds will be primarily directed towards expanding the startup's existing bus network, which currently spans 15 states. IntrCity aims to deepen its penetration and reach within these regions and beyond.

A portion of the investment will also be allocated to crucial operational enhancements. This includes upgrading IntrCity's proprietary fleet management platform, improving the overall customer experience for travelers, and extending the service's coverage to include tier II and tier III cities, thereby catering to a wider audience.

Founded in 2019 by Kapil Raizada and Manish Rathi, IntrCity operates on a bus aggregator model, managing long-distance bus services across more than 630 routes. The company, under its parent Stelling Technologies, also runs RailYatri, a platform for booking train tickets.

IntrCity currently operates with approximately 600 buses and competes with other major bus aggregators like FlixBus, LeafyBus, Zingbus, redBus, and ixigo-backed gogoBus. The startup has ambitious plans to double its fleet size within the next two years.

This funding follows a Series C round in February 2024, where IntrCity raised INR 37 crore from Mirabilis Investment Trust. Its investor base includes notable names like Samsung Venture Investment Corporation, Nandan Nilekani’s family trust, Omidyar Network India, and Blume Ventures.

Financially, IntrCity has shown robust growth, with revenue increasing to INR 500 crore in FY25 from INR 300 crore in the previous fiscal year. Raizada anticipates this growth to continue, projecting revenues to exceed INR 700 crore in the ongoing fiscal year, highlighting profitable and organic expansion.

Impact This significant funding round for IntrCity underscores the growing investor confidence in the intercity bus travel market, driven by increasing disposable incomes and a rise in tourism. The capital will enable IntrCity to strengthen its competitive position, enhance service quality, and expand its reach, potentially impacting the broader transportation and logistics sector in India. The news indicates a healthy ecosystem for mobility startups. Impact Rating: 7/10

Difficult Terms Explained: Series D Funding: This is a later stage of venture capital financing for a company that has already gone through earlier funding rounds (Series A, B, C) and is demonstrating significant growth and market traction. It typically involves larger sums of money to fund expansion, acquisitions, or market dominance. Full-stack mobility platform: A company that offers a comprehensive suite of services covering all aspects of travel, from booking and ticketing to fleet management and customer support, often integrating various transportation modes. Bus aggregator model: A business model where a company partners with multiple bus operators, consolidating their services onto a single platform for booking and operations, often standardizing the customer experience. Fleet management platform: A system or software used to manage and monitor a company's fleet of vehicles (in this case, buses), including scheduling, maintenance, driver management, and performance tracking. FY25/FY24: Fiscal Year 2025 and Fiscal Year 2024, referring to the company's financial reporting periods, usually ending in March for Indian companies.