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Bus network operator IntrCity SmartBus on Thursday raised Rs 250 crore (~$28 million) in a Series D funding round led by A91 Partners, at a roughly Rs 1200 crore post-money valuation. The company plans to use to newly-raised fund to improve customer travel experience, upgrade fleet management technology platform, and provide deeper and wider coverage to Tier II and Tier III cities. Moreover, the firm is on track to double its fleet and intends to run a network of 1,000 buses in the next few years. Currently, the firm runs roughly 550 to 600 buses, according to Kapil Raizada, Co-founder and President at IntrCity SmartBus. The firm is planning to go deeper on existing routes, adding to frequency of buses and providing commuters with multiple timing options for their travel. “Now that we have a product that meets the requirements of our consumers and we have a sound product-market fit, it makes sense to expand deeper and wider,” Raizada told YourStory. IntrCity has recorded a 50% year-on-year increase in its FY25 revenue, clocking around Rs 500 crore. According to Raizada, the firm is targeting to report a revenue of between Rs 720 to 750 crore in the current financial year. The reason behind the optimistic target is growth in adoption, Raizada pointed out. “We are seeing a fairly healthy adoption of our services and a lot of it is organic. We are not a very aggressive marketing-driven growth company. We believe in putting the right product out there, get traction and grow.” According to the firm, the numbers stand as a testament to the optimism. Today, more than 50% of its occupancy rates are taken up by repeat customers. The company is also profitable on the EBIDTA (earnings before interest, taxes, depreciation, and amortisation) level. This means the company’s core operations are generating a positive earnings figure before the deductions. “We are seeing improving levels of profitability year-on-year and I think we should be profitable at an overall level also,” Raizada said. (Edited by Megha Reddy)
