All-electric intercity bus startup Fresh Bus raises Rs 87.5 crore

Bengaluru-based all-electric intercity bus startup Fresh Bus has raised Rs 87.5 crore (or around $10.5 million) in a Series A funding round.

The round was led by Maniv, an international early-stage venture capital fund with a focus on transportation.

Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings also participated in the round.

Purpose of fundraising

Fresh Bus aims to use the raised capital to scale its operations by adding 15 routes and deploying 150 new electric buses.

The startup will also focus on enhancing technological capabilities and bolstering the team.

Fresh Bus is also backed by notable investors such as CRED founder Kunal Shah, TVS Motors MD Sudarshan Venu, and Rivigo CEO Deepak Garg.

Aiming to scale to 1,000 electric buses

Sudhakar Chirra, founder and CEO of Fresh Bus, said the company expects to scale to 1,000 electric buses pan-India over the next four years.

“We expect to scale to 1,000 electric buses pan-India over the next four years, generate skilled employment opportunities for thousands of people, and offer a green alternative for mass road transportation,” Chirra said.

Sudhakar Reddy Chirra is also the founder of bus aggregator Abhibus, which was acquired by ixigo in August 2021 in a cash and stock deal.

Fresh Bus' market presence

Presently, Fresh Bus operates 20 electric buses, providing eco-friendly and affordable travel on routes such as Bengaluru-Tirupati and Hyderabad-Vijayawada.

The startup is committed to offering a digital-first customer experience featuring in-class ticketing, real-time bus tracking, and a comprehensive loyalty program.