IntrCity SmartBus lands $30M at $140M valuation to deepen its grip on India’s intercity travel market

IntrCity SmartBus, an innovative intercity bus service in India, has successfully raised $30 million in funding aimed at broadening its reach across smaller towns and cities in the region. This Series D funding round, predominantly composed of equity and spearheaded by A91 Partners, has positioned the Noida-based startup with a post-money valuation of $140 million. As migration from smaller towns to major cities intensifies due to work and educational opportunities, intercity travel demand in India is surging. To accommodate this growing need, the Indian government has significantly enhanced its highway system, with the national highway network expanding by over 60% in the last decade, from 56,723 miles to 90,847 miles, according to government statistics. Although the railway system remains extensive, it struggles to keep up with the increasing inter-state travel requirements, making road travel a vital alternative. IntrCity SmartBus seeks to fill the gaps left by state-run intercity bus services, which often lack reliability and comfort. The startup operates on an asset-light model, collaborating with local bus owners to equip their vehicles with proprietary technology for real-time tracking. Co-founder and president Kapil Raizada emphasized the importance of their digital platform, which centralizes ticket bookings and optimizes route planning based on customer demand. To enhance passenger safety and service quality, IntrCity SmartBus assigns trained personnel, referred to as “captains,” on every bus. Most buses are equipped with washrooms, and the company has established air-conditioned boarding lounges staffed by crew members to elevate the pre-departure experience. "All our buses are cloud-connected," Raizada remarked, highlighting their in-house developed bus operating system that oversees various operational parameters. Founded in 2019 as an online train ticketing service under the RailYatri brand, IntrCity SmartBus quickly identified unmet needs in road-based travel. Currently, RailYatri contributes only about 10% of the startup's revenue, with the SmartBus segment generating the remaining 90%. The platform operates approximately 600 bus trips daily, serving between 20,000 and 25,000 passengers each day, ultimately reaching nearly 700,000 per month. IntrCity SmartBus maintains partnerships with over 50 local bus operators and covers average distances of over 311 miles. Approximately 95% of their services are overnight, catering to essential travel needs such as work or education. The typical clientele ranges from 20 to 45 years old and includes small business owners, trainers, government officials, and students. The startup follows a hub-and-spoke model, servicing 13 to 14 key economic hubs across 15 states in India, including extensive coverage in both northern and southern regions. Co-founder and CEO Manish Rathi noted that significant data analysis informs decisions on bus configurations, ensuring they meet passenger needs effectively. In the last fiscal year, IntrCity SmartBus saw a remarkable 67% increase in revenue, reaching ₹5 billion (approximately $57 million), with projections aiming to exceed ₹7 billion (around $79 million) this year. The company has maintained an 'EBITDA-positive' status for the past couple of years and plans to achieve full profitability this year. With the new funding, IntrCity SmartBus aims to deepen its penetration in the Indian market while improving customer experiences and fleet management technologies. Raizada expressed the ambition to elevate the perception of bus travel in India, stating, "We want to make buses the preferred mode of travel in India." According to a report by the online bus ticketing platform RedBus, more than 223 million intercity journeys were recorded in India during the financial year 2025, with the sector adding over 72,000 new routes and approximately 6,400 new buses last year, enhancing capacity by around 265,000 daily seats. Alongside IntrCity SmartBus, several new intercity bus startups are emerging, including ZingBus, LeafyBus, and FreshBus, while European giant FlixBus has also entered the Indian market, reflecting a growing interest in this sector. Despite the competition, IntrCity remains focused on executing its operational strategies effectively, emphasizing the unique challenges of road travel in India.