Electric digital intercity bus startup Fresh Bus raised INR 875 million ($10.5 million) in its Series A funding round. Founded by Sudhakar Reddy Chirra, who previously founded bus aggregator Abhibus, Fresh Bus offers ticketing, real-time tracking, a loyalty program, and other services. The company had raised INR 160 million ($1.9 million) in its first seed funding round from Indian OTA Ixigo the previous year. Fresh Bus currently operates on two routes: Bangalore-Tirupati and Hyderabad-Vijayawada, with a fleet of 20 electric buses. The funding will be used to expand the route network by adding 15 new routes and launching 150 e-buses.
The bus industry in India is projected to be valued at INR 1,040 billion ($12.4 billion) by 2026, showing an annual growth rate of 6.64%. Ground transport is a significant contributor to India’s online travel market, with the rail and intercity bus categories making up 30% of the total market. The intercity bus market is expected to grow by 21% from 2023 to 2026, reaching $1.9 billion. This growth is driven by the middle class in secondary and tertiary regions, with bus services being vital in enabling travel to domestic and international destinations. The digitization and modernization of the bus industry is demonstrated by the partnerships between Indian OTAs and online bus ticketing platforms.
MakeMyTrip, in collaboration with the Ministry of Tourism, launched a campaign called ‘India: The Homecoming’ to invite the Indian diaspora abroad to rediscover India. The campaign aims to showcase the transformation of India over the years and encourage the diaspora to return and experience the changes firsthand. This partnership is an extension of MakeMyTrip’s previous initiatives, including highlighting lesser-explored destinations in India. Oyo reported its first-ever net profit of INR 2.29 billion ($27 million) for the 2024 fiscal year, following eight consecutive quarters of positive adjusted EBITDA. The company is planning a Series G funding to support its growth and expansion plans.
EaseMyTrip has set a goal of becoming one of the top three OTAs globally in the coming years. The company’s cost advantage over competitors in the Middle East and Europe is expected to contribute to its international growth. A strategic partnership with Google Wallet aims to streamline booking processes by integrating all necessary aspects into one platform. IndiGo announced new routes to enhance connectivity to Singapore, Kuwait, and Colombo, as part of its expansion plans to double the airline’s capacity over the next seven years. Sarovar Hotels opened a Golden Tulip-branded hotel in Agra, marking its 15th Golden Tulip property in India.
Overall, the travel and hospitality industry in India is experiencing growth and transformation, driven by technological advancements, increasing tourism, and changing consumer behaviors. The digitization of transportation services, partnerships between OTA’s and tourism boards, and the expansion of hotel chains reflect the evolving landscape of the industry. With investments, partnerships, and strategic expansions, companies like Fresh Bus, MakeMyTrip, Oyo, EaseMyTrip, IndiGo, and Sarovar Hotels are positioning themselves to capitalize on the growing opportunities in the sector. By adapting to changing trends and leveraging technology, these companies are paving the way for a more connected and accessible travel experience in India.
