Indian Startup Chalo Raises $45 Million in Funding to Revolutionize Bus Commutes and Expand Internationally
Indian startup Chalo, focused on transforming bus commutes, has successfully raised $45 million in a recent funding round. The company has also secured an additional $12 million in debt financing, further strengthening its mobility offerings and facilitating expansion into international markets.
The Series D funding round was led by Avataar Ventures, with participation from existing investors such as Lightrock India, WaterBridge Ventures, and former Google executive Amit Singhal. Trifecta and Stride Ventures provided the debt financing. This latest funding brings Chalo’s total funds raised to $119 million.
Chalo’s founder, Mohit Dubey, previously established CarWale, an online platform for buying and selling new and used vehicles. Recognizing the limited reach of CarWale and similar companies, Dubey decided to address the broader population by launching Chalo. The startup aims to empower bus operators by enabling digital payments and offering commute tracking services.
Despite the scarcity of buses in India, the country’s bus market presents a substantial opportunity valued at around $20 billion—almost double the size of the taxi market. With only three buses available for every 10,000 residents, there is significant potential for disruption in an underserved sector. Chalo seeks to tackle issues such as cash-based fare payments, limited access to monthly passes, and the unpredictable nature of bus schedules.
Chalo equips buses with GPS systems, allowing passengers to track their commutes in real-time through the Chalo mobile app, which also facilitates ticket purchases and offers monthly passes. The startup currently operates in over 50 cities, tracking more than 15,000 buses across India. Its platform has demonstrated increased ridership due to its efficiency in streamlining bus travel.
Over time, Chalo has expanded its services to cater to premium customers through the acquisition of Shuttl, backed by Amazon. The company has also ventured into the e-bike sector under the Vogo brand.
Chalo plans to bolster its fleet with e-vehicles and continue its expansion into additional international markets. The startup is focused on providing a comprehensive public transport network solution, encompassing city buses, premium buses, and first and last-mile connectivity.
