Delhi-NCR-based intercity mobility startup Zingbus has raised $9 Mn (around INR 76.42 Cr) in its Series A funding round from bp Ventures. The investment comes a day after Inc42 reported that Zingbus had raised INR 41.8 Cr (approximately $4.9 Mn) through a preferential issue from bp Ventures.
In a statement, bp Ventures said the funding would help Zingbus scale its operations and expand its team. The startup has also signed a commercial agreement with Jio-bp pulse, the electric mobility joint venture between Reliance and bp, to use its EV charging network and convenience sites across the country for bus operators on the Zingbus platform.
The startup is also set to raise INR 59.04 Cr (around $6.9 Mn) through a preferential issue of equity shares to several investors, including BP Technology Ventures, IE Ventures, and others. Zingbus has filed a notice with the Ministry of Corporate Affairs detailing the issuance of 38,455 Series A3 compulsorily convertible preference shares (CCPS) at a face value of INR 1 and a premium of INR 15,354 per share to secure the funds.
As part of the preferential issue, BP Technology Ventures will invest INR 41.8 Cr (around $4.9 Mn), IE Venture Fund Follow-On I will contribute INR 14 Cr, 9Unicorns Accelerator Fund-I (now rebranded as 100Unicorns) will pump in INR 1.24 Cr, and AdvantEdge Technology will invest INR 2 Cr through its fund schemes.
Founded in 2019 by Prashant Kumar, Mratunjay Beniwal, and Ravi Kumar Verma, Zingbus aggregates fleets of buses to deliver an end-to-end standardised intercity travel experience. The company claims to have a fleet of more than 350 buses operational in 300 cities across 18 states in India. It is also making significant progress in building an electric vehicle fleet and establishing EV charging infrastructure.
The intercity mobility sector in India is witnessing a surge in demand, with several players entering the market. Bengaluru-based Fresh Bus, a provider of electric interstate bus services, recently raised INR 43.9 Cr in its Series A funding round led by Maniv Mobility. In July, FlixBus partnered with Paytm to expand its intercity bus offerings in India.
Zingbus, which is backed by Y Combinator, faces competition from companies like Fresh Bus, Orange Tours and Travels, and NueGo. However, its focus on standardising intercity travel and transitioning to electric mobility sets it apart in the growing market.
“The investment is aimed at scaling operations and increasing the team size,” said bp Ventures in its statement.
This news was first reported by Inc42.