All-electric intercity bus startup, Fresh Bus, has raised INR 87.5 Crore (approximately USD 10.5 million) in its Series A funding round. The investment was led by Maniv, an international early-stage venture capital fund focused on transportation, with participation from Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings.
Fresh Bus, known for its digital-first approach to intercity travel, currently operates a fleet of 20 electric buses, servicing routes such as Bengaluru-Tirupati and Hyderabad-Vijayawada. The startup offers a seamless and eco-friendly travel experience, with advanced features like real-time bus tracking, a robust loyalty program, and best-in-class ticketing.
The newly secured funds will enable Fresh Bus to significantly expand its operations by adding 15 new routes and deploying 150 additional electric buses. The investment will also be utilised to scale the company’s technological capabilities and enhance its strategic team, all aimed at accelerating growth.
Since its inception last year, Fresh Bus has rapidly emerged as a leader in the electric bus mobility sector. “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 on the recent development.
Future plans with new funding
Since its inception, Fresh Bus has served over 4 lakh passengers, maintaining an industry-leading 95 per cent On-Time Performance (OTP). The company has also made substantial contributions to environmental sustainability, saving 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 Sudhakar Chirra, Founder & CEO of Fresh Bus. “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 added, “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.”
Fresh Bus is setting its sights on broader horizons, planning to expand its operations across most of South India with an eventual pan-India presence. “We will focus on high-demand routes, leveraging our partnerships and data-driven insights to identify key markets. By expanding our fleet and service offerings, we aim to establish a strong presence nationwide, catering to the growing demand for eco-friendly intercity travel,” Chirra explained.
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Fresh Bus envisions scaling to 1,000 electric buses across India over the next four years, creating skilled employment opportunities and offering a sustainable alternative for mass road transportation.
EV Bus mobility in India
The intercity bus market in India, valued at over INR 84,000 crore, sees over one crore passengers transported daily. Fresh Bus is positioning itself as a key player in this space, leveraging innovations in drivetrain technology, infrastructure, and customer experience. The rise of EV bus mobility in India marks a significant shift toward sustainable transportation.
Commenting on the future of the sustainable mobility in India, Chirra added that Fresh Bus is leading this transition, and with strong government support and technological advancements, the future looks promising for electric buses, especially in intercity travel.
With these strategic investments and a clear vision for the future, Fresh Bus is poised to become a major player in India’s intercity travel market, paving the way for a greener, more efficient transportation network.
Investor perspective
“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, echoed this sentiment: “We are thrilled to continue supporting the Fresh Bus team as they create a sustainable and customer-first bus travel experience.”
