Mobility startup Chalo raised $57 million in a mix of debt and equity, as part of its Series D of this, $45 million was raised through equity funding led by Avataar Ventures, where existing investors such as Lightrock India, WaterBridge Ventures, former Google executive Amit Singhal, among others also participated. The startup raised the remaining $12 million in venture debt from Trifecta and Stride Ventures.
Chalo will use the funds to fuel its next phase of growth, which will include the addition of more electric buses and e-bikes. It also intends to use the funds to expand into new foreign markets and to strengthen its technology stack in order to fully digitise its buses.
“Our capabilities have grown significantly in the last two years.” We have expanded our core business of city buses and now provide communities with a multi-modal public transportation network solution that includes city buses, premium buses, and first and last-mile connections. “This is a significant step forward in our journey to make everyday travel better for everyone,” said Chalo founders and CEO Mohit Dubey.
Chalo runs a full-stack tech platform that enables bus owners to digitalize their operations by incorporating features like live tracking and digital payments. Commuters, on the other hand, can take advantage of features such as live arrival time, live tracking, and bus cards.
Under the brand Shuttl, Chalo also offers premium office commuter buses in Delhi and Kolkata. It also includes a Vogo vertical that provides EV bikes for first and last-mile connectivity.
The business promises to be operating in 51 cities and to track 15,000 buses in places such as Mumbai, Chennai, and Lucknow, among others. It also has a presence in other markets such as the Philippines and Thailand.
The fundraising round comes at a time when capital is pouring into the transportation sector, particularly large-ticket businesses. This is partly due to increasing overtures towards fleet electrification and incentives to use EVs in the country.
