Mobility platform IntrCity on Thursday said it has secured INR 37 crore from investors led by Mirabilis Investment Trust, part of the family office of Infosys co-founder K Dinesh.
The funding round also saw participation from existing investors including Nandan Nilekani’s family trust, Omidyar Network India and Ujamaa Ventures.
IntrCity works with more than 30 bus operators to provide intercity travel services in some 10 states. The firm runs a booking site and adds tech capabilities like monitoring hardware and software to the vehicles, besides enforcing standard operating procedures across its partner operators. The firm also runs the online train booking service provider RailYatri.
The firm had last raised INR 100 crore in a funding round in February 2020, giving it a valuation of about INR 700 crore.
The latest funding round happened at a higher valuation, cofounder Kapil Raizada told ET, without giving the exact figure.
With this funding round, Nilekani’s family trust will have the largest holding in the firm at more than 20%, with Omidyar holding between 15% and 17%, Raizada said. Blume Ventures and Samsung Venture Investment are among its other investors.
The firm is now looking to exit FY24 with more than INR 300 crore in revenue and an earnings before interest, depreciation and amortisation (Ebitda) of about INR 5 crore, alongside a loss after tax of about INR 5 crore, Raizada told ET.
Its revenue is expected to grow to about INR 450 crore in FY25, with between INR 25 crore and INR 30 crore in Ebitda, alongside a positive profit after tax, he said.
“A large part of the funds we have raised will go to the firm’s reserves, with some of it used for expansion. We don’t have any explicit plans for further fundraising right now as we get close to profitability…,” Raizada said. “This also gives us the ability to be more selective about future investors.”
The firm might consider some acquisition opportunities “if there is a fit,” he said.
IntrCity said it expects to see about 80% of its growth over the next year come from its existing markets.
“We are very bullish about the public transport space… there is currently a gap in the expenditure that has to happen on infrastructure like roads that can massively help push this sector ahead, and there are many benefits therein related to cost and sustainability too,” Raizada said.
In December, ET had reported that the government is working on a plan to replace 800,000 diesel buses, more than a third of the total on roads, with electric ones over the next seven years. The replacement plan includes 200,000 electric buses for state transport undertakings, 550,000 for private operators, and 50,000 for schools and employee transportation by 2030.
