ZingBus, a start-up providing intercity mobility services in India, is in the final stages of talks to raise between $12 and $15 million in a new funding round, Entrackr reported. The Gurugram-based company, which aggregates fleets of buses to offer end-to-end travel services, is looking to expand into new cities and increase its fleets.
InfoEdge Ventures is expected to lead the round, which will also include participation from other new and existing investors.
If the round is successful, ZingBus will have raised a total of almost $20 million in funding, including an undisclosed amount from Y Combinator's winter 2021 batch. The company raised around $6 million in a pre-Series A funding round in July 2021, with investment from Infoedge Ventures, Founders Club, Pioneer Fund, Anim Fund, Locus Ventures, Liquid 2 Ventures and several angel investors.
ZingBus was founded four years ago by Mratunjay Beniwal, Ravi Kumar Verma and Prashant Kumar, and currently claims to have established a network of over 350 buses serving more than 500 cities. The company recently announced that it has provided services to over three million customers across 18 states in Northern, Western and Southern regions of India.
The new funding is expected to value ZingBus at around $70 million post-money, the sources said. The company is one of several competing in India's intercity bus aggregating sector, alongside Yolobus, RailYatri's IntrCity, and FreshBus.
In addition to expanding its services, ZingBus has also partnered with the National Highways for Electric Vehicles (NHEV) to launch a joint e-mobility project. The initiative aims to help private diesel bus operators switch to electric vehicles, as the company expects the vehicles to be more profitable, with a 15 per cent-20 per cent decrease in running costs.