Existing investor India Quotient also participated in the round along with other angel investors.
Launched in 2015, Cityflo connects residential areas in Mumbai, like the Western suburbs, Navi Mumbai, and Thane, to major commercial hubs in the city like Lower Parel, Andheri, BKC, and Colaba. The company runs 160 buses and logs over 8,000 bookings daily.
The startup said it will utilise the funds to expand its services on the current and new routes and strengthen its position as a daily commute brand for the city’s working professionals. The brand is also working towards skilling drivers on customer service etiquette. They also have plans to launch resting facilities for drivers.
The transport industry was one of the worst affected in the aftermath of the pandemic. However, the business is starting to recover with the resumption of work from the office in some corporates.
Jerin Venad, cofounder of Cityflo, said that their business is back to 60% of the pre-Covid levels. “Our goal was to offer a commute option that is convenient, comfortable, and seamless. This means passengers can catch up on their work, sleep, or a Netflix series that was left in the middle. The pandemic has further underscored how essential it is to bring this kind of an offering to people,” he said.
At its peak, the company’s annualised revenue was close to Rs 25 crore. It is looking at a fourfold growth in revenue in the next year, Venad said.
With the new funding, the company plans to increase its daily bookings to 30,000 and add around 400 more buses to its fleet.
Commenting on the investment, Siddharth Talwar, partner at Lightbox Ventures, said: “The public transport system in India is broken and overstressed.”
“For those who drive their cars to work, the problem is compounded by traffic and long travel time. Cityflo holds a lot of promise as a brand for the working professionals who fight traffic for hours on end every day and incur costs in terms of time,” he added.