Zingbus Secures $9 Million in Funding to Fuel Expansion and Growth
As Zingbus Secures ₹59 crore in funding, the intercity mobility startup is set to expand its operations and strengthen its presence in the competitive market.
Update: December 17, 2024 | 6:10 PM
Following the report by Coach Builders India regarding Zingbus raising INR 41.8 Cr (approximately $4.9 million) through a preferential issue, bp Ventures has officially announced a $9 million (around INR 76.42 Cr) investment in the intercity mobility startup as part of its Series A funding round.
This investment is aimed at scaling Zingbus’ operations and expanding its workforce, as stated by bp Ventures.
On September 11, Zingbus entered into a commercial agreement with Jio-bp pulse, the electric mobility joint venture between Reliance and bp. This partnership will enable Zingbus to leverage Jio-bp pulse’s extensive EV charging network and convenience sites across the country for the bus operators on its platform.
Original Story | December 16, 4:05 PM
Marking its first major funding of 2024, ZingBus is set to raise ₹59 crores (approximately $7 million) in a funding round led by BP Technology Ventures.
ZingBus’ board has approved the issuance of 38,455 preference shares at ₹15,355 each to raise ₹59 crore (approximately $7 million), according to regulatory filings with the Registrar of Companies.
BP Ventures led the round with ₹41.8 crore, while Info Edge-backed IE Ventures Fund Follow-On contributed ₹14 crore, and 9Unicorns and AdvantEdge VC added ₹1.25 crore and ₹2 crore, respectively.
The fresh capital will fuel the company’s expansion, and growth, and meet additional funding requirements.
Following this funding round, ZingBus will see a dilution of approximately 11.16% of its equity, with BP Ventures acquiring a 7.9% stake and IE Ventures holding 6.07%.
Estimates suggest ZingBus’ valuation will rise to ₹530 crore (around $63 million) post-allotment, with this round potentially being part of a larger funding initiative reported last year.
ZingBus has yet to file its annual results for FY24. During the fiscal year ending in March 2023, it recorded a 3 times year-on-year growth of Rs 218 crore with a loss standing at Rs 51 crore.
In the intercity bus aggregation space, ZingBus competes with players such as Yolobus, IntrCity SmartBus, FreshBus, NueGo, and the newly launched Leafy Bus.
Also Read: IntrCity’s Manish Rathi on the Road Ahead for Electric Bus Adoption in the Private Sector
Strategic Significance of the Funding
The funding arrives at a time when Zingbus is experiencing substantial growth in its operations, propelled by increased demand for reliable, tech-enabled intercity transportation services.
This is a time when the demand for intercity and interstate bus services is increasing, which puts Zingbus in an advantageous position.
As Zingbus Secures ₹59 crore in funding, the capital injection will enable Zingbus to expand its operational footprint and improve its technological infrastructure. By leveraging the expertise and networks of its investors, the company aims to aggregate fleets of buses to deliver an end-to-end standardized intercity travel experience to its customers.
Also Read: Bus Travel | Long Weekend Travel Trends: Abhibus Insights 2024
Zingbus’ Growth Trajectory
Since its inception, Zingbus has established itself as a prominent player in India’s intercity travel market. By combining technology with customer-first policies, the platform has set benchmarks for quality and affordability.
With over 3 million users to date, Zingbus continues to scale its operations, ensuring reliable services across hundreds of routes nationwide.
This funding round is poised to accelerate Zingbus’ mission of making intercity travel accessible, affordable, and comfortable for millions of passengers.
