Co-founder Kapil Raizada stated that IntrCity SmartBus, an intercity mobility startup backed by Nandan Nilekani, is seeking to raise funds of USD 20-30 million by the end of 2022 to support its future growth plans.
He stated that the company will increase its capacity on existing routes and expand its services on new routes over the next 12-18 months. IntrCity currently offers 2 lakh seats in a month, with 200-250 daily schedules. With a fleet of 200 buses, it operates over 40 routes in 16 states.
Raizada said that the company is currently in contact with potential investors in order to raise funds in the region of USD 20-30 million.
He said that some of these amounts may change depending on who is investing and what our business plans are for the next two years.
The company has raised USD 30 million in capital to date. In February 2020, Nandan Nikelani, and Samsung Venture Investment joined the board as strategic investors. They have contributed more than Rs 100 crore in capital.
Raizada stated that the company is getting interest from both PE and VC investors. He added, “at our size, this is more VC type of investors who come in from growth phase, but it also attracts private capital players being a profitable enterprise.”
According to the company it achieved operational profitability and 1.8 times growth in the first half of 2022. He said that IntrCity would complete the process by the end of this year.
The process usually takes between 3-4 months. He said he expected the process to be complete by the end of the calendar year.
To meet the demand for buses, the company will increase its capacity by 50% and add around 100 more buses to the fleet. This is in addition to the existing pre-COVID level that was in effect from March of this year.
We plan inventory based on forecast demand. He said that we expect a 50% increase in demand for the next season and are currently preparing more capacity to meet that demand.
The company stated that the company aims to achieve USD 100 million annualized revenue within the next 12 months and to maintain earnings before interest taxes, depreciation and amortization (EBITDA), and level profitability for the next five years.