Chalo Secures $20 Million in Funding from Avataar Ventures for Bus Tracking and Ticketing Services
- ByStartupStory | May 22, 2023
Bangalore-based bus tracking and ticketing service provider, Chalo, has successfully raised $20 million in a recent investment round led by Avataar Ventures. This marks the company’s first funding round in 2023 and reinforces its position as a key player in the transportation technology sector.
According to regulatory filings in Singapore, Chalo’s board passed a special resolution to issue 3,015 preference shares at an issue price of $6,634 per share, generating the $20 million investment. The latest funding round values Chalo at approximately $290 million post-allotment. Notably, existing investor LightRock remains the largest shareholder with a 30.2% stake, while Avataar Ventures now commands a 7.1% ownership.
The Series C funding round included a secondary component of $10 million, which was utilized to buy back Employee Stock Ownership Plans (ESOPs), serving as a rewarding incentive for current and former staff members. To date, Chalo has raised approximately $100 million across various investment rounds.
Chalo operates by partnering with local city bus operators throughout India, offering GPS tracking and online ticketing services to passengers. This includes digital bus passes for multiple journeys, with the operators paying Chalo based on increased ridership. The company’s innovative approach has contributed to its growth and market presence.
While Chalo is yet to file its financial statements for the fiscal year 2023, its operating revenue in fiscal year 2022 remained relatively stable compared to the previous year. In FY22, Chalo recorded operating revenue of Rs 35.75 crore, a slight increase from Rs 26.17 crore in FY21. However, during the same period, the company’s losses surged more than twofold to Rs 66.4 crore.
The recent funding injection will enable Chalo to further enhance its bus tracking and ticketing services, invest in technological advancements, and expand its operations to cater to a larger customer base. With Avataar Ventures’ support, Chalo is well-positioned to consolidate its position in the market and continue revolutionizing the way people travel by bus in India.
Chalo’s commitment to providing convenient and efficient transportation solutions, coupled with its growing network of bus operators, showcases its potential to reshape India’s public transportation landscape. As the company advances, it aims to leverage its technological expertise and strategic partnerships to drive positive change and improve the overall commuting experience for passengers nationwide.
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