Bengaluru: Bus aggregator ZipGo Technologies Pvt. Ltd has suspended its operation across all its cities, and has laid off at least 60 employees from its workforce, according to a report by Entrackr.
The report added that ZipGo had earlier suspended operations in Bangalore and Mumbai two months ago, before completely shuttering down operations in other cities including Delhi NCR, Jaipur, Kolkata, and Pune.
ZipGo allows commuters to reserves seats on its buses through a mobile app, similar to cab aggregators like Uber and Ola. The buses operate on routes aimed at working professionals and around tech parks.
The startup Founded in 2015 by Gaurav Agarwal, Jitender Kumar, and Pritesh Gupta. It had earlier acquired Pune-based Supreme Trans Concepts to expand its services in Mumbai and enter the Pune market in October 2018.
The company has raised about $55 million in capital so far from investors including Essel Group, Orios Venture Partners, Omidyar, and Ventureast.
It also raised ₹ 300 crore from Essel Group earlier last year. One of its competitors, Shuttl, owned by Super Highway Labs Pvt. Ltd, raised $11 million in a funding round led by Amazon India, Alexa Fund and Dentsu Ventures.
ZipGo shutdown comes just months after Essel Group’s proposed merger deal with DTH operator Videocon was blocked by a legal dispute in Delhi High Court.
Services like ZipGo and Shuttl had earlier ran into regulatory roadblocks with some city-level regulators. ZipGo had also launched women-only shuttle services in Gurgaon in 2015, but were unable to convince authorities in Bengaluru.
Calls and texts made to ZipGo co-founder Pritesh Gupta were unanswered until time of publishing.