Zingbus Growth and Financial Overview

Zingbus has made remarkable strides in intercity mobility, nearly doubling its scale in the fiscal year ending March 2025. Despite this growth, the Gurugram-based platform still faced financial losses.

Financial Performance of Zingbus

Zingbus reported a staggering 85% increase in operational revenue, reaching Rs 161 crore in FY25, up from Rs 87 crore in FY24, based on financial records submitted to the Registrar of Companies. The company’s primary revenue streams stem from intercity bus ticketing services, which remain its only income source.

Expenditure Breakdown

On the expenditure side, bus hire costs represented the largest portion, comprising over 63% of total expenses. This cost rose significantly by 147%, amounting to Rs 121 crore in FY25 compared to Rs 49 crore in FY24. Moreover, guarantee commissions to fleet partners surged by 78% to Rs 16 crore, while employee benefits saw a moderate increase of 7% to Rs 15 crore. Advertising costs also grew by 9%, leading to Rs 6 crore during the same period.

Total Expenditure Insights

Overall, Zingbus’ total expenses escalated by 65% to Rs 191 crore in FY25, up from Rs 116 crore in FY24. For an in-depth analysis of these expenses, various sources can be consulted.

Operational Efficiency Improvements

In spite of the significant scaling, Zingbus managed to enhance its operational efficiency. The EBITDA loss was reduced to Rs 30.4 crore in FY25 from Rs 38.7 crore, resulting in an improvement in EBITDA margin from -44.5% in FY24 to -18.9% in FY25. The net loss for Zingbus stood at Rs 25 crore in FY25, nearly unchanged from a Rs 24 crore loss in FY24. The company’s ROCE and EBITDA margin were recorded at -40.39% and -18.88%, respectively.

Unit Economics

On a per-unit basis, Zingbus spent Rs 1.19 to generate one rupee of operational revenue in FY25, down from Rs 1.33 in the preceding year. At the end of FY25, Zingbus held cash and bank balances of Rs 3 crore, with total current assets of Rs 9 crore.

Funding and Future Prospects

To date, Zingbus has secured a total of $25 million in funding, featuring lead investors such as AdvantEdge Technologies, Info Edge, and BP Ventures. Zingbus represents a promising venture; however, it faces challenges if market conditions shift significantly. With a commitment to an electric vehicle fleet and carbon-neutral journeys, the company is well-positioned for long-term growth, leveraging early mover advantages and available opportunities.

Challenges Ahead

Nonetheless, Zingbus’s heavy reliance on imported buses from China and the existing limitations in charging infrastructure pose notable risks. Additionally, fluctuations in global LNG prices could hinder the drive towards electrification in public transport. However, Zingbus appears to be on the right track, establishing a strong brand in a competitive market. The company aims to allocate more resources towards brand building, albeit constrained by market conditions. Exploring new segments that typically overlook bus travel could be a viable strategy moving forward. Successfully accumulating miles driven without incidents will be vital to its continued success.