Highlights
zingbus Secures ₹59 Crore Investment to accelerate Growth Plans
The intercity travel platform zingbus is set to receive a significant investment of ₹59 crore (around $7 million), led by BP Ventures in its recent funding round. This financial boost represents a crucial turning point for the Gurugram-based company, paving the way for considerable expansion.
Documents filed with the Registrar of Companies indicate that zingbusS board has sanctioned a special resolution allowing for the issuance of 38,455 preference shares at a price of ₹15,355 each. This strategic move is vital for meeting their financial objectives.
investment Breakdown
This funding initiative has garnered attention from several prominent investors:
- BP Ventures has committed an investment totaling ₹41.8 crore.
- The IE ventures follow-on fund, supported by Info Edge, has contributed ₹14 crore.
- Two unicorn startups along with AdvantEdge VC have invested approximately ₹1.25 crore and ₹2 crore respectively.
The raised capital will primarily be directed towards enhancing zingbus’s growth strategies, while also addressing various financial commitments outlined in their disclosures.
Impact on Equity Stakeholders
This fundraising initiative is expected to lead to an equity dilution estimated at around 11.16%:
- BP Ventures is projected to acquire a 7.9% ownership stake.
- The IE ventures are anticipated to hold shares amounting to 6.07%.
An analysis from Startup Superb suggests that following this share issuance, zingbus could achieve an estimated valuation close to ₹530 crore (approximately $63 million). This funding aligns with broader capital strategies previously discussed by Startup Superb last April.
An Insight into ZingBus’s Business Model
Founded four years ago,zingbus aims to unify various bus fleets into one comprehensive platform designed specifically for intercity travel services that cater directly to customer needs and preferences.
A Glimpse at Financial Performance Metrics
even though zingbus has not yet released its annual performance data for FY24,it reported notable year-on-year growth during the fiscal year ending March 2023—tripling its revenue and reaching around ₹218 crore despite incurring losses nearing ₹51 crore.
ZingBus operates within a fiercely competitive environment featuring major players such as yolobus, RailYatri’s intracity service, AbhiBus, and freshbus. The recent influx of investment is crucial for strengthening ZingBus’s position within the intercity transportation sector while facilitating further enhancements in service quality and operational efficiency.