In a significant development in the Indian mobility tech space, bus-tracking and transport technology startup Chalo has raised INR 52.5 Cr (~USD 6.1 million) in a fresh round of funding comprising both equity and debt. The latest capital infusion saw participation from existing investor Filter Capital and cofounders Mohit Dubey, Priya Singh, and Vinayak Bhavnani, alongside debt partners Blacksoil Capital and Caspian Impact Investments.
According to some reports, Chalo’s board approved a resolution to issue 2.1 lakh Series K optionally convertible redeemable preference shares (OCRPS) to raise INR 32.5 Cr through equity instruments. The balance INR 20 Cr came via debt instruments.
This funding round follows a robust Series D round in May 2023, where the company had raised USD 57 Mn (~INR 470 Cr) — USD 45 million in equity led by Avataar Ventures and USD 12 million in venture debt from Trifecta Capital and Stride Ventures. That round nearly doubled Chalo’s valuation to between INR 400 to 500 million, a sharp rise from its USD 40 million (~INR 296 crore) Series C round’s valuation in 2021.
Strengthening a Full-Stack Mobility Platform
Founded in 2014 by serial entrepreneur Mohit Dubey (also the cofounder of CarWale), along with Vinayak Bhavnani, Priya Singh, and Dhruv Chopra, Chalo has emerged as a leading player in India’s urban transit digitisation. The Navi Mumbai-headquartered startup operates a full-stack mobility platform that digitises bus operations for public and private transport operators through features like live tracking, digital ticketing, contactless payments, and fleet management tools.
Chalo’s integrated approach benefits both operators and commuters. For operators, it provides a backend SaaS platform that optimises route efficiency and revenue tracking. For passengers, the platform delivers convenience and safety, offering live bus locations, expected arrival times, crowding indicators, and emergency features like panic buttons, especially aimed at enhancing safety for women.
Aggressive Growth, Acquisitions & Multi-Modal Expansion
Chalo has expanded its offerings through strategic acquisitions:
- Shuttl (2021) – premium office commute buses in cities like Delhi NCR, Pune, and Hyderabad.
- Vogo (2022) – electric bike-sharing for first and last-mile connectivity.
The startup claims operations in 66+ Indian cities, including metros like Mumbai, Chennai, and Lucknow, and a presence in international markets such as China, Thailand, and the Philippines. As of FY24, over 15,000 buses are live-tracked daily through Chalo’s platform.
Financial Performance
While Chalo’s topline is growing steadily, its bottom line remains under pressure:
- FY24 revenue: INR 137.5 Cr, up 34% from INR 102.7 Cr in FY23.
- FY24 loss after tax: INR 135.7 Cr, up 42% from INR 95.3 Cr in FY23.
The widening losses are attributable to increased spending on technology, expansion, and service integration — typical of high-growth, infrastructure-heavy tech startups.
Funding Utilisation
The company has indicated that the latest funds will be used for general corporate purposes, though past rounds have focused on:
- Increasing the number of electric buses and e-bikes on roads.
- Expanding to new international markets.
- Continuing to digitise more city bus fleets.
- Strengthening its multi-modal network that integrates premium buses, public buses, and micromobility.
Outlook
Despite steep losses, Chalo continues to draw investor confidence, thanks to a scalable, impact-driven model with high relevance in India’s congested urban mobility environment. Its commitment to improving public transport via digitisation aligns with broader government objectives around smart cities and sustainable transit.
As urban India continues to depend heavily on buses — used by more than 50% of urban commuters — Chalo is well-positioned to transform the sector into a tech-enabled, user-friendly, and efficient system. The fresh capital is expected to further fuel this mission, even as the startup navigates the challenges of profitability and global expansion.
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