App-based bus service provider Cityflo raises $8 mn led by Lightbox Ventures1 min read . Updated: 25 Nov 2020, 12:38 PM IST
- The company will utilize the funds to expand and upgrade its operations, increase presence on heavy traffic routes and build the service as a go-to brand for Mumbai’s large working population
Bengaluru: Cityflo, an app-based bus service provider, has raised ₹57 crore ($8 million) in Series A funding led by Lightbox Ventures along with existing investors India Quotient among others.
The Mumbai-based company said it will utilize the funds to expand and upgrade its operations, increase presence on heavy traffic routes and build the service as a go-to brand for Mumbai’s large working population.
The firm will soon launch a facility for bus drivers to park their vehicles and rest.
Mobility startups were among the hardest hit due to the covid-led lockdown. Provisions like work from home, extended by most large corporations among others, have not helped the segment whose entire business model depends heavily on working professionals.
“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. The pandemic has made the situation more delicate with heightened apprehensions around safety, hygiene, and sanitisation. This segment therefore has the potential to scale up and become the next big thing," Siddharth Talwar, partner, Lightbox Ventures, said.
Founded in 2015, Citiflo currently works with a total of 160 buses and provides services in Mumbai, Navi Mumbai and Thane. The company logs over 8000 bookings daily.
Despite the sluggish business, several mobility companies have managed to raise funding this past year.
Delhi NCR-based all-electric ride hailing platform BluSmart Mobility Pvt Ltd raised $7 million in September.
Bounce raised $6.5 million from venture debt investor InnoVen Capital in March, which the startup will utilize in building its electric vehicle (EV) fleet. Yulu bikes, that rent out cycles and battery-powered vehicles, raised ₹30 crore in June.