IntrCity SmartBus raises ₹250 crore to double fleet, targets ₹1,000 crore turnover by next year

IntrCity SmartBus, the country’s leading next-generation intercity bus network, has raised ₹250 crore in a Series D funding round led by A91 Partners to accelerate its expansion and strengthen its technology backbone. The company plans to double its fleet, deepen its presence across tier-2 and tier-3 cities, and enhance safety and comfort for passengers as it targets a ₹1,000 crore turnover by next year.

Calling the investment a “validation” of India’s evolving road travel ecosystem, Manish Rathi, Co-Founder and CEO of IntrCity SmartBus, told CNBC-TV18 that the fresh capital will help build the next decade of road mobility infrastructure. “We consider this investment not just in us but as a big validation of how road travel in India—especially long-distance travel by bus—is transforming,” Rathi said.

He added that the company’s long-term vision is anchored in the belief that road-based transport will continue to dominate India’s mobility landscape. “We believe the future of mobility in India, at least for long distances, will be predominantly road-based. This investment helps us build that next 5–10 years of infrastructure—whether it’s customer experience, technology, or safety," he noted.

With the new funding, IntrCity aims to scale up operations in high-demand corridors, including coastal Andhra Pradesh and central India, while improving efficiency through its technology-driven platform. Rathi said the company is seeing strong demand from smaller cities, where "travellers are aspiring for good, technology-driven services.”

The company reported revenues of around ₹520 crore last year and expects to close the current financial year at about ₹750 crore. “Hopefully, in the next 12 months, we can stretch to ₹1,000 crore,” Rathi said, adding that growth is being fuelled by rising preference for road travel among Indians. Nearly 90% of Indians, he pointed out, still rely on road transport, and the cost of bus travel, especially door-to-door, remains competitive with trains and other options.

A large part of the fundraising will go towards improving safety and passenger experience through technology. "We are now relooking at features that improve safety—such as accident and fire prevention—and how we can create a more comfortable environment inside the bus,” Rathi said.

While IntrCity is already profitable, the CEO stressed that the new capital will be used to strengthen the company’s technological and operational capabilities, not for daily operations. The company is also exploring cleaner alternatives for the future. Rathi said IntrCity is “very excited about the potential of electric buses” and expects EV technology to mature over the next couple of years, enabling its adoption in long-distance travel.

As IntrCity looks to double its fleet and expand deeper into Bharat, it is betting that the next wave of India’s travel revolution will be driven by smarter, safer, and more connected road journeys.

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