IntrCity SmartBus Secures $30 Million to Expand Intercity Bus Network in India
Funding Aims to Enhance Services for Growing Travel Demand
IntrCity SmartBus, a technology-driven intercity bus service in India, has successfully raised $30 million in funding during its Series D round, which was entirely equity-based. This financing, led by A91 Partners, boosts the valuation of the Noida-based startup to approximately $140 million post-money.
Rising Demand for Intercity Travel
The trend of migration from smaller towns to urban centers for employment and educational opportunities is accelerating intercity travel across India. To address this increasing need, the Indian government has significantly expanded its highway infrastructure, with national highways growing by over 60% in the past decade, from 56,723 miles to 90,847 miles.
Despite having an extensive railway system, the demand for inter-state travel often outstrips capacity, underscoring the necessity for reliable long-distance road travel alternatives. The existing state-run intercity bus services frequently struggle with reliability and comfort, a gap that IntrCity SmartBus aims to bridge.
Unique Business Model
In contrast to traditional bus operators, IntrCity SmartBus employs an asset-light approach by collaborating with local bus owners. They equip these vehicles with proprietary technology that enables real-time tracking, according to co-founder and president, Kapil Raizada.
The startup centralizes ticket booking and route management on its digital platform, allowing for efficient service frequency, pickup locations, boarding stations, and seating arrangements tailored to passenger demand. To enhance safety and service consistency, each bus features on-board personnel, known as "captains."
Most vehicles include washrooms, while IntrCity has also established air-conditioned waiting lounges staffed with crew members to enhance the customer experience prior to travel.
“All our buses are cloud-connected,” Raizada stated, emphasizing their in-house developed bus operating system, responsible for monitoring various parameters, including CCTV, sound, and climate control.
Evolution of the Business
Founded in 2019, IntrCity SmartBus initially operated as an online train ticketing service under the RailYatri brand. This prior experience provided valuable insights into intercity travel behaviors and uncovered unmet demands in road transportation, Raizada remarked. Presently, the SmartBus segment accounts for 90% of their total revenue, while RailYatri contributes about 10%.
IntrCity SmartBus currently facilitates approximately 600 daily bus trips, serving between 20,000 and 25,000 passengers each day, equating to nearly 700,000 passengers monthly. Collaborating with over 50 local bus partners, the startup manages trips averaging more than 311 miles, with about 95% of services conducted overnight, catering primarily to travelers with essential commitments such as work, education, and appointments.
Expanding Network and Revenue Growth
Focusing on economic hubs, IntrCity SmartBus follows a hub-and-spoke operational model that identifies 15 to 16 key regions across India. Currently operating in 13 to 14 of these hubs, the service spans 15 states, covering northern regions from Jammu to Uttarakhand and significant southern states, including Karnataka, Tamil Nadu, and Andhra Pradesh.
Manish Rathi, co-founder and CEO, mentioned, “A substantial amount of data is analyzed to understand consumer requirements,” including decisions regarding bus configurations.
The startup has experienced impressive financial growth, reporting a 67% increase in revenue year-over-year, reaching ₹5 billion (approximately $57 million) for the last fiscal year. Projections indicate revenue could surpass ₹7 billion (around $79 million) in the current fiscal year. Additionally, the company has been EBITDA-positive for the last two years, with aims to achieve full profitability this year.
Future Prospects
With the recent infusion of capital, IntrCity SmartBus intends to enhance its operational reach and improve customer service and safety, alongside upgrading its fleet management technology.
Raizada acknowledges the challenges facing bus mobility in India, where public perception often ranks buses below trains and flights. "We aspire to transform buses into the preferred travel option in India,” he stated.
According to a recent report from RedBus, more than 223 million intercity journeys occurred in India in the financial year 2025, with the sector adding over 72,000 new routes and approximately 6,400 new buses, increasing capacity by an estimated 265,000 seats daily.
IntrCity SmartBus is not alone in this burgeoning market; numerous emerging intercity bus startups such as ZingBus, LeafyBus, and FreshBus have entered the scene, alongside European giant FlixBus, which commenced operations in India last year. Despite the competition, the company’s focus remains on operational excellence over networking.
“India presents unique challenges in road travel. If something can go wrong, it likely will,” Rathi concluded. “Our priority is ensuring exceptional operational standards.”
