IntrCity SmartBus aims to raise $20-30 million in funds by the end of this year

• ByStartupStory     |    August 31, 2022

IntrCity SmartBus, backed by Nandan Nilekani, is hoping to obtain $20-30 million in funding by the end of the year to fuel its future growth aspirations. IntrCity currently provides two lakh monthly seats with approximately 200-250 daily programmes. It has around 40 routes across 16 states and a fleet of 200 buses.

The co-founder Kapil Raizada, said, “The company is in contact with possible investors to seek financing in the range of $20-30 million. In the next 12-18 months, the company intends to increase capacity on existing routes while also expanding its services on some new routes. However, some of these figures may alter depending on the type of investors that come in and how our various business strategies that we hope to develop over the next two to three years. At our scale, this is more of a VC kind of investor that comes in from the growth phase, but it also attracts private equity players being a profitable firm, who said that the company is receiving interest in its business from both VC and PE players.”

Mr. Raizada further stated, “By the end of this year, IntrCity hopes to have the procedure finished. The procedure typically takes 3 to 4 months, and “we anticipate the procedure to be finished by the end of this year. Using demand forecasts, we plan our inventory. We do anticipate a 50% increase in demand in the upcoming season, so we are setting up more capacity to meet that demand.”

The company has so far garnered $30 million in funding, with the most recent round taking place in February 2020 when Nandan Nikelani and Samsung Venture Investment joined as strategic investors and contributed over 100 crore in capital.

It claims that in the first half of 2022, it produced 1.8 times growth, with revenues approaching $45 million at an annualised run-rate and the company establishing operating profitability. With an additional 100 buses in the fleet, it will increase capacity by 50% in order to meet demand, which has returned to pre-COVID levels as of March this year.

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