All-electric intercity bus startup, Fresh Bus, has successfully closed its Series A funding round, raising a total of INR 87.5 crore (approximately USD 10.5 million). The funding round was led by Maniv, an international early-stage venture capital fund focused on transportation, with additional participation from Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings.
Founded just last year, Fresh Bus has quickly positioned itself as a leader in the electric bus mobility sector. The startup currently operates a fleet of 20 electric buses, offering eco-friendly and technologically advanced travel experiences on routes like Bengaluru-Tirupati and Hyderabad-Vijayawada. With features such as real-time bus tracking, a robust loyalty program, and seamless ticketing, Fresh Bus has garnered a strong customer base in a short period.
The newly secured funds will allow Fresh Bus to significantly expand its operations. The company plans to add 15 new routes and deploy 150 additional electric buses, enhancing its footprint across South India and eventually establishing a pan-India presence. The investment will also be used to scale the company’s technological capabilities and strengthen its strategic team to accelerate growth.
“By offering superior customer experiences and leveraging technology like real-time tracking and AI-driven insights, Fresh Bus has achieved higher occupancy rates and revenues compared to competitors,” said Sudhakar Chirra, Founder & CEO of Fresh Bus, in an exclusive conversation with ET Travel World.
Since its inception, Fresh Bus has served over 4 lakh passengers, maintaining an industry-leading 95% On-Time Performance (OTP). The company’s contributions to environmental sustainability are notable, having saved over 42 lakh liters of diesel and reducing nearly 15,000 tons of CO2 emissions—equivalent to saving approximately 2.5 lakh trees.
“With this new funding, our goal is to establish a nationwide network and become the Indian market leader in intercity bussing over the next few years,” said Chirra. “We aim to scale to 1,000 electric buses across India in the next four years, creating skilled employment opportunities and offering a green alternative for mass road transportation.”
Chirra further elaborated on Fresh Bus’s future plans, stating, “We will focus on innovation, operational efficiency, and strategic partnerships to maintain our competitive edge and explore new routes. The company is set to add 15 new routes and deploy 150 additional electric buses, further expanding its footprint.”
The intercity bus market in India, valued at over INR 84,000 crore, serves more than one crore passengers daily. Fresh Bus is positioning itself as a key player in this market, leveraging innovations in drivetrain technology, infrastructure, and customer experience. The company envisions scaling to 1,000 electric buses across India over the next four years, offering a sustainable and efficient alternative for intercity travel.
“Fresh Bus is proving that large-scale decarbonisation of transportation is not just possible but also economically viable,” said Nate Jaret, Partner at Maniv Mobility. “India’s intercity bus travel is ready for disruption, and Sudhakar’s team is leading the charge.”
Robert Linck, Shell Ventures’ Chief Investment Officer, added, “Electrifying mobility in India presents a unique opportunity to improve air quality, reduce emissions, and lower costs. Fresh Bus is at the forefront of this transformation, driven by a data-driven, customer-centric approach.”
Jai Sumer Singh, Partner at Riverwalk Holdings, also expressed enthusiasm about the startup’s progress: “We are thrilled to continue supporting the Fresh Bus team as they create a sustainable and customer-first bus travel experience.”