News Travel

RailYatri’s parent IntrCity raises $4.5 Mn more in Series C

IntrCity, the parent company of RailYatri and SmartBus, has raised an additional $4.5 million in its Series C funding round, led by Mirabilis Investment Trust and backed by existing investors such as Nandan Nilekani’s family trust, Omidyar Network India, and Ujamaa Ventures. The mobility platform, which offers both train and bus services to budget travelers, has raised over $50 million to date and is valued at around $110 million, according to TheKredible.

The company plans to use the fresh capital to enhance its product offerings, user acquisition, and expand its network of hubs and routes across 16 states in India. IntrCity claims to serve more than 15 million travelers per month through its two brands: RailYatri, which provides comprehensive train travel information and ticketing, and SmartBus, which operates intercity buses on long-distance routes such as Delhi–Lucknow, Mumbai–Pune, Bengaluru–Hyderabad, and Chennai–Coimbatore.

RailYatri also recently launched a ‘flexi-ticket’ feature that allows users to make last-minute changes to their plans when finding a reservation on trains isn’t available. The company says that this feature has increased the conversion rate and customer satisfaction.

RailYatri’s parent IntrCity raises $4.5 Mn more in Series C

IntrCity’s co-founder and CEO, Manish Rathi, said in a press release, “We are delighted to have the continued support of our investors in our journey to provide a safe, reliable, and affordable mobility solution to millions of Indians. We are witnessing a strong recovery in demand post the pandemic and are well-positioned to capture the growth opportunities in the intercity mobility sector.”

The company also reported a strong financial performance in the fiscal year 2023, with its revenue from operations growing 2.3 times to Rs 273.7 crore and its losses shrinking 58.6% to Rs 18.18 crore. The company attributed this to its focus on operational efficiency, cost optimization, and customer retention. The company also claims to have achieved EBITDA profitability in the ongoing fiscal year.

IntrCity competes with other online travel aggregators (OTAs) such as MakeMyTrip, Yatra, redBus, and AbhiBus in the Indian market, which is expected to grow at a compound annual growth rate (CAGR) of 13.5% from 2020 to 2025, according to a report by Research and Markets.


Your email address will not be published. Required fields are marked *