ZingBus, an intercity mobility startup, has raised Rs 59 crore ($7 million) in a fresh funding round led by BP Technology Ventures. This is the first major investment for the Gurugram-based company in 2024, which indicates renewed confidence in India’s intercity travel market.
Key Players and Funding Details
According to filings with the Registrar of Companies, ZingBus raised that amount by issuing 38,455 preference shares at a rate of Rs 15,355 per share.
- BP Ventures lead the round with an investment amount of Rs 41.8 crore.
- Info Edge-backed IE Ventures Fund Follow-On invested Rs 14 crores.
- Other investments came from 9 Unicorns (Rs 1.25 crore) and AdvantEdge VC (Rs 2 crore).
This means the total funding has resulted in an equity dilution of 11.16%. BP Ventures has a 7.9% stake, while IE Ventures now holds 6.07% of ZingBus.
Utilization of Funds and Business Expansion
The company will utilize fresh capital for expansion and growth, besides meeting additional capital requirements. This funding is likely to strengthen the infrastructure of ZingBus and further penetrate the competitive intercity mobility sector.
Post-Funding Valuation
As of estimates given by Fintrackr, the valuation has reached Rs 530 crore or $63 million. It is also indicated that this round might be the first step of a major funding program first indicated back in April 2023 to increase market presence.
Business Model and Competitors- ZingBus
ZingBus, founded in 2019 aggregates fleets of buses to provide hassle-free end-to-end intercity travel services. The company emphasizes reliability, affordability, and ease of usage and is focused on the demand of India in the structuring of bus travel services.
ZingBus faces stiff competition with other companies operating in the intercity bus aggregation domain such as Yolobus, IntrCity of RailYatri, Abhibus, and FreshBus. Competition is extremely intense as competitors are in a similar niche.
Financial Performance and Growth
ZingBus has seen outstanding growth over the years. For FY23, it saw 3X revenue growth at Rs 218 crore, from the previous fiscal year. It still reported a loss of Rs 51 crore in the same period. It has not yet reported the FY24 results.
Industry Outlook and Future Prospects
With massive investments in the tech-solution space for bus travel going up, intercity mobility is witnessing rapid growth in India. The recent funding of ZingBus by industry players such as BP Ventures and Info Edge, both leading players, indicates rising beliefs about its capacity to scale and innovate.
With the new capital, ZingBus is well-positioned to expand its services, cater to rising consumer demand, and compete in the broader mobility startup ecosystem. As the market continues to mature, ZingBus aims to establish itself as a leading player in India’s intercity travel sector.
Key Takeaway:
Fresh funding for ZingBus signifies the confidence of investors in tech-driven intercity mobility solutions. With an aggressive valuation and expansion plans, the company is well-set to change the face of bus travel in India. Lean more with FounderLabs every day!
