Tech-enabled intercity bus-network platform IntrCity SmartBus announced on October 30 that it has raised ₹250 crore (approximately US$28 million) in a Series D funding round led by venture-capital firm A91 Partners.
Founded in 2019 by Kapil Raizada and Manish Rathi, IntrCity SmartBus operates as the bus arm of ticketing and travel platform RailYatri and follows an asset-light model to provide standardized intercity travel with real-time tracking and IoT-enabled fleet monitoring.
The fresh capital injection will be directed toward improving customer experience, upgrading fleet-management technology, and expanding operations into Tier-2 and Tier-3 cities across India, the company said.
Raizada commented that the investment “enables us to further double down on our vision to transform the bus-travel landscape in India,” and added that the company is projected to maintain year-on-year growth of roughly 50 percent.
IntrCity currently operates more than 630 routes across 15 states and competes in a rapidly expanding intercity mobility market.
With the new funds, the company plans to double its fleet and target a turnover of approximately ₹1,000 crore by next year.
A91 Partners General Partner Gautam Mago said in a statement that the investment reflects the firm’s conviction in IntrCity’s ability to become “a category-defining leader in intercity mobility” owing to the brand’s pan-India reach, operational consistency, and focus on customer service.
Industry watchers note that India’s intercity bus travel market is estimated at over US$30 billion and is expected to grow at a compound annual rate of 10–13 percent over the next few years, driven by improved highways, rising commuter demand, and the expansion of tech-driven booking platforms.
While the new funding positions IntrCity SmartBus for aggressive expansion, the company also highlighted that infrastructure constraints—such as inadequate bus-terminal facilities—remain a challenge.
Raizada noted that despite better vehicle connectivity, poor passenger amenities and lack of dedicated bus ports hamper broader adoption. He called for public investment in “bus-ports” similar to airports to enhance the attractiveness of road travel.
The funding round brings IntrCity’s total capital raised to about US$80 million, according to industry estimates.
As the startup looks to scale, its focus will likely include deeper penetration into smaller cities, enhancing dynamic-routing capabilities, and strengthening partnerships with operator-partners to improve asset utilization and service reliability.
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