IntrCity SmartBus Secures $30M to Transform India’s Travel Landscape

IntrCity SmartBus, a technology-driven intercity bus service based in Noida, India, has successfully raised $30 million in a Series D funding round led by A91 Partners. This funding values the company at $140 million and aims to enhance its presence across smaller cities and towns in India. As intercity travel grows, particularly due to migration for work and education, the demand for reliable transport options is rapidly increasing.

India has made significant strides in expanding its highway infrastructure, with the national highway network increasing by over 60% in the last decade, from 56,723 miles to 90,847 miles, according to government data. Despite the extensive railway network, capacity constraints make road travel a vital alternative. State-run bus services often lack the reliability and comfort necessary for passengers, presenting an opportunity for IntrCity SmartBus to fill this gap.

Innovative Business Model Enhances Travel Experience

Unlike traditional bus operators, IntrCity SmartBus employs an asset-light model. It partners with local bus owners, equipping their vehicles with proprietary technology for real-time tracking. Co-founder and president Kapil Raizada explained that this approach centralizes ticket booking and route planning through a digital platform, which analyzes demand to optimize service frequency and seating configurations.

To prioritize safety and customer satisfaction, IntrCity SmartBus deploys trained personnel, referred to as “captains,” on every bus. Most vehicles are equipped with washrooms, and the company has established air-conditioned boarding lounges staffed with crew members to enhance the pre-departure experience. “All our buses are cloud-connected,” Raizada noted, emphasizing the sophisticated bus operating system that monitors critical parameters like CCTV, sound, and temperature levels.

Founded in 2019, IntrCity SmartBus initially started as an online train ticketing platform under the RailYatri brand. The insights gained from this venture informed the team’s understanding of intercity travel behaviors and unmet needs in road-based mobility. Currently, RailYatri contributes about 10% to the startup’s revenue, while the SmartBus segment accounts for the remaining 90%.

Expanding Network and Growth Projections

IntrCity SmartBus operates around 600 daily trips, serving approximately 20,000 to 25,000 passengers each day, totaling nearly 700,000 monthly. Collaborating with over 50 local bus operators, the company covers key economic hubs across 15 states, primarily targeting non-discretionary travel needs such as work and education. The typical passenger age ranges from 20 to 45 years, including small business owners, government officials, and students.

With a hub-and-spoke model, the startup has identified 15 to 16 key economic hubs and operates in approximately 13 to 14 of these locations, spanning northern India from Jammu to Uttarakhand and much of southern India, including Karnataka, Tamil Nadu, and Andhra Pradesh. Co-founder and CEO Manish Rathi emphasized the importance of data analysis in understanding consumer needs, which influences decisions about bus layouts and configurations.

IntrCity SmartBus reported a 67% year-over-year revenue growth, reaching ₹5 billion (approximately $57 million) in the last fiscal year. Projections for the current year indicate revenue could exceed ₹7 billion (around $79 million). The company has maintained an EBITDA-positive status for the past two years and aims for full profitability in 2025.

The latest funding will enable IntrCity SmartBus to expand further across India while enhancing customer experience and safety, as well as upgrading fleet management technology. Raizada acknowledged the challenges facing bus mobility in India, stating, “We want to make buses the preferred mode of travel in India.”

According to a recent report from online bus ticketing platform RedBus, more than 223 million intercity journeys were made in India during the financial year 2025. The sector has seen significant growth, adding over 72,000 new intercity routes and approximately 6,400 new buses, expanding capacity by an estimated 265,000 daily seats. IntrCity SmartBus is not alone in this space; several new-age intercity bus startups, including ZingBus, LeafyBus, and FreshBus, are emerging, alongside European giant FlixBus, which entered the Indian market last year.

Despite the growing competition, IntrCity SmartBus prioritizes operational excellence over market positioning. Rathi remarked, “India is a very different beast when it comes to road travel. If something is going to go wrong, it will go wrong. We’re not a network-first company. We’re an operational-excellence-first company.”