Intrcity Smartbus Secures $30M Funding - Expansion in India

IntrCity SmartBus Secures $30 Million to Expand Intercity Bus Network

IntrCity SmartBus, an India-based, technology-driven intercity bus platform, has successfully secured $30 million in a new funding round. This investment will be utilized to broaden the company’s reach into smaller cities and towns throughout India.

Series D Funding and Valuation

The funding round, designated as Series D, was led by A91 Partners and consisted entirely of equity. This investment has resulted in a post-money valuation of $140 million for the Noida-based startup.

Growing Demand for Intercity Travel in India

Increased migration from smaller towns to major metropolitan areas for employment and educational opportunities is driving a surge in intercity travel across India.

Infrastructure Improvements

Significant enhancements to India’s highway infrastructure are supporting this growth. Over the last decade, the national highway network has expanded by more than 60%, increasing from 56,723 miles to 90,847 miles, as per official government statistics.

Challenges with Existing Options

Despite an extensive railway system, capacity limitations hinder its ability to meet the escalating demand for interstate travel. This positions long-distance road travel as a vital alternative. However, state-operated bus services often lack the necessary reliability and comfort, creating an opportunity for IntrCity SmartBus.

IntrCity SmartBus’s Unique Approach

IntrCity SmartBus distinguishes itself from conventional operators through its asset-light business model. The company collaborates with local bus owners, equipping their vehicles with proprietary hardware for real-time monitoring.

Centralized Platform for Efficiency

The startup’s digital platform centralizes ticket booking and route planning. This allows for optimized service frequency, strategic pickup point selection, designated boarding stations, and demand-based seat configurations.

Enhanced Safety and Passenger Experience

To guarantee safety and maintain consistent service quality, IntrCity SmartBus deploys trained personnel, known as “captains,” on each bus. The majority of vehicles are equipped with restrooms, and the company provides air-conditioned boarding lounges with dedicated staff to improve the pre-trip experience.

Cloud Connectivity and Real-Time Monitoring

“All of our buses are cloud-connected,” explained a company representative. “We’ve developed an in-house bus operating system that monitors and manages critical parameters, including CCTV footage, sound levels, and temperature.”

From Train Ticketing to Bus Platform

Founded in 2019, IntrCity SmartBus initially launched as an online train ticketing platform under the RailYatri brand. This initial venture provided valuable insights into intercity travel patterns and the unmet needs within road-based transportation.

Revenue Shift

Currently, RailYatri contributes approximately 10% to the startup’s overall revenue, while the SmartBus business generates the remaining 90%.

Operational Scale and Passenger Numbers

IntrCity SmartBus currently operates around 600 bus trips daily, transporting between 20,000 and 25,000 passengers each day – totaling nearly 700,000 passengers monthly. The platform collaborates with over 50 local bus operators, with trips averaging over 311 miles in length. Approximately 95% of services are overnight, catering to essential travel requirements.

Target Demographic

The startup’s typical passengers are individuals aged 20 to 45, including small-business owners, trainers, government employees, sales professionals, and students.

Strategic Network and Hub-and-Spoke Model

IntrCity SmartBus employs a hub-and-spoke model, having identified 15 to 16 key economic centers across India. The company currently operates within 13 to 14 of these hubs, spanning 15 states. The network encompasses all of northern India, from Jammu to Uttarakhand, and a significant portion of the south, including Karnataka, Tamil Nadu, and Andhra Pradesh.

Data-Driven Decision Making

“Extensive data analysis informs our understanding of consumer needs,” stated Manish Rathi, co-founder and CEO of IntrCity SmartBus. “This includes determining optimal bus layouts – whether full sleeper configurations or hybrid options with both sleepers and seats.”

Financial Performance and Future Projections

IntrCity SmartBus achieved a 67% year-over-year revenue increase, reaching ₹5 billion (approximately $57 million) in the last fiscal year. The company anticipates exceeding ₹7 billion (around $79 million) in revenue during the current year. It has maintained “EBITDA-positive” status for the past two years and aims for full profitability this year.

Expansion Plans

The new funding will enable the startup to expand its presence “deeper and wider” across the country, enhance the customer experience, improve safety measures, and upgrade its fleet management technology.

Addressing Perceptions of Bus Travel

“A significant challenge in bus travel across India is the perception that buses are inferior to trains and flights,” explained Kapil Raizada. “Our goal is to establish buses as the preferred mode of transportation in India.”

Market Growth and Competition

A recent report by redBus indicates that over 223 million intercity journeys were undertaken in India during the financial year 2025. The sector witnessed the addition of over 72,000 new intercity routes and approximately 6,400 new buses last year, increasing daily seat capacity by an estimated 265,000.

Competitive Landscape

Alongside IntrCity SmartBus, other emerging intercity bus startups in India include Zingbus, LeafyBus, and Fresh Bus. The entry of European giant FlixBus into the Indian market last year further demonstrates the growing interest in this sector. However, IntrCity SmartBus prioritizes operational excellence over competition.

Focus on Operational Excellence

“India presents unique challenges for road travel. Unexpected issues are likely to arise,” Rathi emphasized. “We are not primarily a network-focused company; we are dedicated to operational excellence.”