India’s Intercity Bus Revolution Accelerates with $30M SmartBus Funding

According to TechCrunch, IntrCity SmartBus has raised $30 million in an all-equity Series D round led by A91 Partners, valuing the Noida-based startup at $140 million post-money. The tech-enabled intercity bus platform operates around 600 daily trips transporting 20,000-25,000 passengers, with revenue growing 67% year-over-year to approximately $57 million in the last fiscal year. Founded in 2019 as an online train ticketing platform under RailYatri, the company has pivoted to where 90% of revenue now comes from its SmartBus business. The startup uses an asset-light model partnering with local bus operators while adding proprietary technology and trained “captains” on each bus to ensure safety and consistency across its network spanning 15 states. This funding comes as India’s intercity travel market shows significant growth potential.

The Infrastructure Transformation Enabling Bus Mobility

The growth of intercity bus services like IntrCity SmartBus is directly tied to India’s massive national highway expansion, which has seen the network grow from 56,723 to 90,847 miles over the past decade. This infrastructure development creates the physical backbone that makes reliable long-distance bus travel feasible across a country known for challenging road conditions. The government’s push to improve connectivity between economic hubs has effectively laid the groundwork for private operators to build premium services on top of this expanding network. What’s particularly strategic about IntrCity’s approach is their focus on overnight routes averaging over 311 miles – distances where highway quality directly impacts passenger comfort and operational reliability.

The Operational Challenge Beyond Technology

While much attention focuses on the technology aspects, the real differentiator in India’s intercity bus market lies in operational execution. CEO Manish Rathi’s statement that “we’re not a network-first company, we’re an operational-excellence-first company” reveals the fundamental challenge in this space. Unlike many tech startups that prioritize rapid expansion, successful bus operations in India require managing countless variables – from road conditions and vehicle maintenance to crew training and passenger safety. The company’s deployment of trained “captains” on each bus and establishment of air-conditioned boarding lounges represents a level of service standardization that’s historically been absent in India’s fragmented private bus sector.

Competitive Landscape and Market Positioning

IntrCity SmartBus operates in an increasingly crowded space that includes domestic players like ZingBus and LeafyBus, plus the recent entry of European giant FlixBus. However, the market opportunity appears substantial enough to support multiple winners. With 223 million intercity journeys recorded in FY2025 and 72,000 new routes added last year alone, the sector is experiencing explosive growth. IntrCity’s focus on “non-discretionary travel” – work, education, and essential appointments – provides a more stable revenue base than tourism-focused services, which helps explain their path to profitability despite being in a capital-intensive industry.

Beyond Basic Tracking: The Bus Operating System

The company’s development of an in-house “bus operating system” that monitors CCTV, sound, and temperature levels represents a significant advancement beyond basic GPS tracking. This approach to smart bus technology creates a data foundation that can drive continuous improvement in everything from maintenance scheduling to route optimization. The cloud-connected fleet generates rich operational data that, when combined with their existing insights from the RailYatri ticketing platform, creates competitive advantages in understanding travel patterns and passenger preferences. This data-driven approach to decisions like seat configurations and service frequency demonstrates how technology can transform what’s traditionally been a low-margin, operationally challenging business.

Scalability Challenges and Expansion Risks

As IntrCity plans to go “deeper and wider” across India, several challenges emerge. Maintaining service quality while expanding into smaller cities and towns will test their operational model, particularly as they rely on partnerships with local bus operators rather than owning their fleet. The asset-light approach provides capital efficiency but creates dependency on third-party vehicle owners who may not share the same commitment to brand standards. Additionally, the overnight bus segment they dominate faces unique safety perceptions that require continuous investment in security features and transparent monitoring systems. Their ambition to make buses “the preferred mode of travel” requires overcoming decades of perception that position buses as inferior to trains and flights.

Transforming Intercity Mobility Economics

The success of platforms like IntrCity SmartBus could fundamentally reshape intercity bus service economics in India. By creating branded, reliable services with predictable pricing and amenities, they’re effectively creating a new premium segment within a market traditionally characterized by extreme price competition and inconsistent quality. This premiumization strategy, if successful, could increase per-passenger revenue while potentially expanding the total addressable market by attracting travelers who currently choose more expensive options or avoid bus travel altogether. The company’s EBITDA-positive status suggests this model can achieve sustainable unit economics, which is crucial for long-term viability in a sector known for thin margins.