Ixigo-backed electric vehicle (EV) bus startup FreshBus has successfully raised Rs 43.7 crore (approximately $5.3 million) in its Series A funding round, marking the first round of funding for the Bengaluru-based company this year. The board of FreshBus approved a special resolution to issue 2 equity shares and 63,825 compulsory convertible preference shares (CCPS) at an issue price of Rs 6,845 each, as revealed in regulatory filings accessed from the Registrar of Companies (RoC).
Leading the round was Maniv Mobility, contributing Rs 35.68 crore, with additional investment from Riverwalk Holdings. Although FreshBus initially aimed to raise Rs 100 crore in this Series A round, the current fundraising appears ongoing, with expectations of further capital infusion. According to the startup data intelligence platform TheKredible, FreshBus has achieved a valuation of approximately $20 million post-allotment in this round, which may adjust with additional funding.
To date, FreshBus has raised around $9 million, including Rs 7.5 crore from investors such as Kunal Shah, TVS Motors Managing Director Sudarshan Venu, and Rivigo CEO and founder Deepak Garg in October of the previous year. FreshBus was founded by Sudhakar Reddy Chirra, who previously established the bus aggregator Abhibus, acquired by Ixigo in August 2021 through a cash and stock deal.
Despite being in the pre-revenue stage, FreshBus reported a loss of Rs 2.1 crore for the fiscal year ending March 2023, as per data from TheKredible. The company is yet to file its annual financial results for FY24. FreshBus plans to utilize the newly raised capital to scale its operations and further develop its EV bus services.
The investment in FreshBus underscores the growing interest in the EV sector, particularly in innovative solutions for sustainable public transportation. As the company progresses, it aims to revolutionize the premium dining space by leveraging its unique offerings and strategic backing from prominent investors.