Public transport technology company Chalo has acquired Shuttl, a premium bus service aggregator for an undisclosed sum in an all-cash deal.
Before the advent of Covid-19, Shuttl used to fulfil around 100,00 rides a day through busses in top cities like Delhi NCR, Kolkata, Hyderabad, Pune, Mumbai and also international cities like Bangkok.
Ever since its inception in 2015, Shuttl has raised funds tuned to $120 million in equity capital from investors including Hong Kong-based venture capital firm SIG Investments, Amazon, Dentsu, Trifecta Capital, Sequoia Capital, Lightspeed India Partners, and Times Internet.
Founded in 2014 by Dubey, Nikhil Aggarwal, and Vinayak Bhavnani, Chalo provides contactless payment solutions intending to transform bus travel into a safer experience.
Earlier this month Chalo which has 15,000 buses live on its platform raised $40 million in a Series-C funding round led by Lightrock India and Filter Capital earlier.
Jointly both these platforms are operational across 33 cities and 12 Indian states which include Delhi NCR, Karnataka, Kerala, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Bihar, Assam and other states.
Chalo uses live GPS tracking devices as well as electronic ticket devices that allow mobile and card payments in buses. Bus operators gain from the increase in ridership. By converting cash tickets into digital transactions via Chalo App and Chalo Card, cash leaks and financial management responsibilities in their day-to-day operations are also reduced.
“We are delighted to join hands with the Shuttl team. We have shared a common passion to solve the daily commute problem, and we have strong synergies in our values and approach. We have great respect for the team and the business they have built,” Mohit Dubey, co-founder and CEO, Chalo, said.
“Chalo and Shuttl were already the largest brands in their space. Together we now fulfil more than 25 million rides per month, and aim for international expansion along with further growth in India as well,”
Amit Singh, co-founder and CEO of Shuttl, said, “We started out to take the pain away from daily commuters. In the process, we ended up building a category, and inspiring others from different parts of the world to do the same. It’s a bittersweet moment for us. We believe the team and legacy of Shuttl will thrive equally well in the new set-up.”