Chalo raises $45 Mn in Series D, taking the total funds raised to $119 Mn

22 May 2023

India’s leading public transport technology company, Chalo, today announced that it has raised US$45 million as Series D funding. This round is led by incoming investors Avataar Ventures, along with existing investors Lightrock India, WaterBridge Ventures, and Amit Singhal (former Senior VP and Head of Google Search). Chalo also announced an additional $12 Mn secured in venture debt from Trifecta and Stride Ventures. This takes the total funds raised by Chalo to US$119 million so far.

Chalo is a tech platform built to improve the consumer experience in city buses and make buses more reliable. With a better and more reliable experience, bus ridership increases. The Chalo App is India’s #1 bus app where passengers can live track their bus and see its live arrival time, thereby eliminating waiting time at bus stops. They can also see how crowded the bus is and buy a ticket or a bus pass via the app. The Chalo Card, available both as an NCMC and a bus card, is India’s #1 bus card. It enables digital bus tickets for those who are not comfortable using their smartphones for payments.

For bus operators, Chalo has built the complete tech stack to digitise bus operations and offer a digital bus experience. Chalo offers a dedicated mobile app for operators with which they can monitor their buses live, as well as a digital tickets platform that enables mobile, card, and cash tickets in buses. Operators benefit with increased revenue. Digital transactions also reduce cash pilferage.

Chalo is operational in 51 cities live-tracking 15,000 buses in India (Mumbai, Chennai, and several other cities) and select international markets, with a proven record of increasing bus ridership by up to 50% in the first year of implementation itself. Chalo also runs premium office commute buses in Delhi and Kolkata under the brand name Shuttl; and has a fleet of e-bikes for first and last mile connectivity under the brand name Vogo. Recently, Chalo also partnered with BEST in Mumbai to launch the Chalo Bus, an all day long premium AC bus service, where passengers can reserve their seats in advance on the Chalo App.

In the next phase of its growth, Chalo plans to focus on increasing sustainable e-vehicles on the road – both buses and e-bikes, and further enhancing its tech capabilities towards 100% digitisation of buses. The firm also plans to expand its presence in international markets after its successful entry into South-East Asia.

Mohit Dubey, CEO, Chalo, said “In the last two years, our capabilities have grown significantly. We have strengthened our core business of city buses, and now offer a multi-modal public transport network solution to cities, encompassing city buses, premium buses, and first and last mile connectivity. This is a large step forward in our journey to make everyday travel better for everyone.” He added, “Our tech stack is globally relevant, and can help improve the public transport experience in cities around the world.”

Mohan Kumar, Managing Director, Avataar Ventures, said “Chalo’s product addresses the need for mass multi-modal transport across the globe, especially in emerging markets, where people travel by bus and two-wheelers. A commuter in cities like Mumbai, Manila, or Bangkok, can download the Chalo App, find a bus to their destination, track its arrival time and book a ticket.” He also added “I am very impressed with Mohit's passion for solving the commute problem for the masses and the team he has built at Chalo.”

Vaidhehi Ravindran, Partner, Lightrock India, said “We have been heartened with the impact that Chalo has created through its solution. Improving mass mobility is key to increasing access to livelihood and opportunities, and to make our cities more liveable by reducing congestion and pollution. By providing a technology-driven solution that solves for all stakeholders of the ecosystem, Chalo has built a business that can scale to be a valuable and socially responsible platform contributing to the country’s growth and development.”

Manish Kheterpal, Managing Partner, WaterBridge Ventures, said “Public transportation is a large problem waiting for disruption. Market leader Chalo has proven their business model in several cities of India with buses at the core, and are now taking their technology solution to global shores.”

Amit Singhal, Founder, Sitare Foundation, and former SVP of Google Search, said “Chalo is solving the mobility problem for the next billion commuters with a user-centric product. I'm happy to have been a part of this journey from the very beginning, from before the very first city, and now looking forward to their international expansion.“

Arijit Sarkar, Director, Trifecta Capital, said “We are extremely excited along with the Chalo team to double down and also welcome the amazing new investors to chart out the massive scale potential across geographies, bus types and engagement models. This capital will help the business show the way forward for clean and efficient urban transportation for millions of people.“