Hyd Startup Fresh Bus raises Rs. 87 crore

Introduction

Hyderabad-based all-electric intercity bus start-up Fresh Bus has raised Rs 87.5 crore ($10.5 million) as a part of its Series A funding round. This milestone will massively accelerate the company’s dream of making sustainable and environment-friendly travel solutions across inter-city travel in India.

The investment, classified as part of a Series A round, was spearheaded by Maniv Mobility, an early-stage VC with a pointed focus on transportation technology. Other participation came from Shell Ventures, Alteria Capital and existing backer Riverwalk Holdings. This heterogenous mix of investors showcases immense faith vested in the vision and business model.

The startup aims to use the freshly infused capital to scale operations manifold. The company will increase the fleet size from 300 to 450 with the addition of new electric buses while adding 15 new routes across the length and breadth of the country. This will not only grow the market but also provide more sustainable travel options to passengers countrywide.

Scaling to 1,000 Electric Buses

Some big plans, indeed, the founder and CEO, Sudhakar Reddy Chirra, has for his company. He aims at increasing the fleet to 1,000 electric buses across India in four years. Thousands of skilled jobs are thus going to be created, and this green alternative is going to be in place for mass road transportation in India.

Chirra is not new to the bus business, as before he cofounded a highly successful bus aggregator, AbhiBus, in 2011, which was acquired by ixigo in 2021. Gained industry expertise and experience, Chirra is well placed and positioned to drive it to its growth journey and lead the company to achieve its long-term vision.

Fresh Bus’s Market Presence Now

Currently, the startup has a fleet of 20 e-buses in operation on popular routes like Bengaluru to Tirupati and Hyderabad to Vijayawada. Passengers’ reviews on these routes are overwhelming. They feel comforted by the affordability of these buses and their green nature.

The startup offers its customers a digital-first experience, providing in-app ticketing, live tracking, and loyalty program benefits for frequent travelers.

The growing demand for electric buses in India

Augmented demands for electric buses have also resulted from increased thinking about the environment recently in India. Concerns for the environment and the global warming that comes with increased levels of air pollution have risen in large numbers, thereby needing sustainable transportation solutions.

Electric buses can save the amount of carbon and the number of operating costs in the long run. Hence, it can turn out to be very attractive to operators and passengers.

Challenges and Opportunities Ahead

As big as the electric bus market’s potential could be, it is not without its problems. First, the EV charging infrastructure itself is in an embryonic stage. Second, electric buses are much, much more expensive than ordinary, diesel-run buses. Again, both challenges are slowly being overcome as governments chip in and technology improves.

The recent fundraising sets the stage for Fresh Bus to take advantage of the increasing demand for electric buses.

The Future

Fresh Bus is well poised to leverage and expand the national footprint of Scania’s position in the intercity bus market in the Indian subcontinent with the infusion of Rs. 87.5 crore.

Fresh Bus’s goal to uplift its fleet of electric buses to 1,000 in the next four years. It’s ambitious, but it could conceivably happen.

Conclusion:

The startup recently raised Rs. 87.5 crore, a move that is a good representation of an increase in demand for sustainable transportation in India. The development is expected to see the company play a huge role in the intercity bus industry. With aggressive passion, Fresh Bus is on its way to be at the core of electric bus travel in India.

Fresh Bus is establishing the company that will effectively impact the transportation scenario in India for the long term. The road ahead is promising, and the recent funding of the company is just the beginning of a green journey.

References

official website
Maniv Mobility: official website
Sudhakar Reddy Chirra on Linkedin: linkedin.com/in/sudhakar-reddy-chirra
Electric Bus Market in India: Research Report

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Frequently Asked Questions

1. What is Fresh Bus?

Fresh Bus is a startup that runs all-electric buses for intercity travel in India. It aims to provide a sustainable and environment-friendly way to travel.

2. How much money did it raise recently?

Fresh Bus raised ₹87.5 crore (about $10.5 million) in its Series A funding round.

3. Who led the funding round?

The funding round was led by Maniv, a venture capital fund that focuses on transportation technology.

4. Which other investors participated in the funding?

Other investors included Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings.

5. What will the startup use the funds for?

The funds will be used to scale up operations, enhance technological capabilities, strengthen the team, and add 150 new electric buses and 15 new routes.

6. Where does the startup currently operate?

Fresh Bus currently operates on routes like Bengaluru-Tirupati and Hyderabad-Vijayawada.

7. How many electric buses does Fresh Bus have now?

Fresh Bus currently has a fleet of 20 electric buses.

8. What are the expansion plans for Fresh Bus?

Fresh Bus plans to expand its fleet to 1,000 electric buses across India over the next four years and add 15 new routes.

9. Who is the founder and CEO?

The founder and CEO of Fresh Bus is Sudhakar Reddy Chirra.

10. What is Sudhakar Reddy Chirra’s background?

Sudhakar Reddy Chirra previously co-founded AbhiBus, a successful bus aggregator that was acquired by ixigo in 2021.

11. What services does Fresh Bus offer to its customers?

Fresh Bus offers in-app ticketing, real-time tracking, and a loyalty program for frequent travelers.

12. How many passengers has Fresh Bus transported so far?

Fresh Bus has transported over 400,000 passengers since its inception.

13. What is the environmental impact of Fresh Bus’s operations?

It aims to reduce air pollution and emissions by providing a green alternative for mass road transportation.

14. Which regions does the startup plan to expand into?

Fresh Bus plans to expand its services across India, aiming for a nationwide network.

15. Can customers book tickets online?

Yes, customers can book tickets online through various platforms like the Fresh Bus website and other travel booking apps.

16. What features do Fresh Bus’s electric buses offer?

Fresh Bus’s electric buses offer noise-free air-conditioned cabins, IoT-enabled real-time air-quality and temperature monitoring, security CCTVs, personal charging docks, Wi-Fi, and real-time tracking[6].

17. Who are some notable investors backing Fresh Bus?

Notable investors include Kunal Shah (CRED founder), Sudarshan Venu (TVS Motors MD), and Deepak Garg (Rivigo CEO)[3][5].

18. How will the expansion impact employment?

The expansion plans are expected to generate skilled employment opportunities for thousands of people.

19. What is the market goal of Fresh Bus?

Fresh Bus aims to become the Indian market leader for intercity bussing in the upcoming years.

20. How does Fresh Bus compete in the market?

Fresh Bus competes with other players like IntrCity SmartBus, ZingBus, and gogoBus by focusing on sustainability, technology, and customer experience[6].