IntrCity SmartBus, a tech-enabled intercity bus platform in India, has raised 30 million dollars in funding to expand its network across smaller cities and towns. The all-equity Series D round was led by A91 Partners and values the Noida-based startup at 140 million dollars post-money.
Intercity travel is accelerating in India as more people migrate from smaller towns to metropolitan cities for work and education. To meet this demand, New Delhi has significantly expanded the country’s highway infrastructure. According to Indian government data, the national highway network has increased by over 60 percent in the past decade, from 56,723 miles to 90,847 miles.
Railways, while extensive, remain capacity-constrained and cannot keep pace with rising inter-state travel demand. That makes long-distance road travel a crucial alternative. Yet, state-run intercity bus services are limited and often fall short on reliability and comfort, a gap IntrCity SmartBus aims to fill.
Unlike traditional operators, IntrCity SmartBus runs on an asset-light model by partnering with local bus owners and equipping their vehicles with proprietary hardware for real-time tracking. The startup also centralizes ticket booking and route planning through its digital platform, which helps determine service frequency, pickup points, boarding stations, and even seat configurations based on demand.
To ensure safety and consistency, IntrCity places trained personnel called captains on board each bus. Most vehicles feature washrooms, and the company has also set up air-conditioned boarding lounges staffed with crew to improve the pre-departure experience.
All the buses are cloud-connected. The company has built an in-house bus operating system which monitors and manages many parameters, including the CCTV, sound, and temperature levels.
Founded in 2019, IntrCity SmartBus began as an online train ticketing platform under the RailYatri brand. That entry point gave the team early insights into intercity travel behavior and unmet demand in road-based mobility. Today, RailYatri contributes just around 10 percent of the startup’s total revenue, while the SmartBus business accounts for the remaining 90 percent.
IntrCity SmartBus operates around 600 daily bus trips, transporting between 20,000 and 25,000 passengers each day, which is nearly 700,000 per month. The platform works with more than 50 local bus operators and runs trips averaging over 311 miles each. About 95 percent of its services are overnight, catering primarily to non-discretionary travel needs such as work, education, or essential appointments. The startup’s typical passengers are between 20 and 45 years old, including small business owners, trainers, government officials, sales professionals, and students.
The startup follows a hub-and-spoke model and has identified 15 to 16 key economic hubs across India. It operates in 13 to 14 of these hubs, spanning 15 states. The network covers all of northern India from Jammu to Uttarakhand and much of the south, including Karnataka, Tamil Nadu, and Andhra Pradesh.
A lot of data analysis goes into understanding consumer needs. This includes decisions like what kind of layout a bus should have, whether it should be a full sleeper, or a hybrid with both sleepers and seats.
IntrCity SmartBus grew its revenue by 67 percent year-over-year to 5 billion rupees, approximately 57 million dollars, in the last fiscal year. The startup projects revenue to surpass 7 billion rupees, around 79 million dollars, in the current year. It has been EBITDA-positive for the past couple of years and aims to become fully profitable this year.
With the latest funding, the startup plans to go deeper and wider through the country and enhance customer experience and safety, as well as upgrade its fleet management technology. One of the bigger challenges in bus mobility across the country is that people have concerns about buses. It is seen as a lesser cousin to trains and flights. The company wants to make buses the preferred mode of travel in India.
More than 223 million intercity journeys were made in India in the financial year 2025, according to a recent report by online bus ticketing platform RedBus. The sector added over 72,000 new intercity routes last year, along with approximately 6,400 new buses, expanding capacity by an estimated 265,000 daily seats.
Alongside IntrCity SmartBus, India is seeing a wave of new-age intercity bus startups such as ZingBus, LeafyBus, and FreshBus. European giant FlixBus also entered the Indian market early last year, signaling growing traction in the space. Still, IntrCity views competition as secondary to execution. The company states that India is a very different beast when it comes to road travel, and if something is going to go wrong, it will go wrong. They emphasize that they are not a network-first company, but an operational-excellence-first company.