Shell Ventures, in collaboration with Maniv Mobility, Riverwalk, and Alteria, has invested $10.5 million in FreshBus as part of a Series A funding round, marking a significant step forward in India’s rapidly growing electric mobility sector. The investment, a combination of equity and debt, underscores the rising momentum in the Indian electric vehicle (EV) market, particularly in the bus segment.
India’s EV market is experiencing exponential growth, with digitization, technological advancements, favorable government policies, and a strong push toward sustainability driving the trend. According to the World Resources Institute (WRI), the country’s EV adoption rate is three times faster than the global average. In the past year alone, EV sales in India reached 1.7 million units, a 40% year-over-year increase, with electric two- and three-wheelers dominating 94% of these sales.
The electric bus market in India is now following a similar trajectory. In the fiscal year 2023, approximately 1,919 electric buses were sold, representing an 85% increase over the previous year. Industry projections estimate that this figure could soar to over 40,000 units by 2028, reflecting a compound annual growth rate (CAGR) of 89%. Notably, around 64% of the total vehicle-kilometers covered by buses in India are attributed to rural and intercity travel, with buses transporting 228 million passengers daily—ten times the daily ridership of Indian Railways, according to Transit Intelligence.
FreshBus, based in Hyderabad, has emerged as a key player in this burgeoning market, aligning closely with Shell Ventures’ strategic vision for transforming the Indian mobility ecosystem. The company’s electric buses are poised to be a game-changer in reducing emissions, with each bus capable of saving over 90,000 liters of diesel and mitigating 200 tonnes of carbon emissions annually.
Shell Ventures’ decision to invest in FreshBus was driven by the company’s customer-centric approach, data-driven platform, advanced battery technology, and commitment to building a reliable and accessible infrastructure. FreshBus’ vision for the future resonated strongly with Shell Ventures, according to the company’s leadership.
Nakul Raheja, Sanjay Varkey, Saurabh Agrawal, Aakash Minocha, and Nishant Kompalli from Shell Energy and Shell Mobility played pivotal roles in securing this investment, which is expected to accelerate the adoption of electric buses across India.
“We are excited to welcome FreshBus to the Shell Ventures family and look forward to collaborating on creating a cleaner, greener, and more efficient transportation system in India,” a spokesperson for Shell Ventures said.
This investment highlights the growing importance of decarbonizing intercity bus travel in India, a segment identified as crucial due to its vast daily ridership and significant potential for reducing carbon emissions.
