What do you think, is India’s transportation app future just about Uber and OLA? No.
An eight-month-old startup, Shuttl is an India’s transportation app offers air-conditioned minibuses service, raised $20 million in Series A round of funding from Lightspeed Venture Partners, Sequoia Capital India and Times Internet to develop its technology and expand its service.
Series A round of funding is the first round of financing that generally a startup gets from a venture capital firm, that is the first time when company ownership is offered to external investors. Such thing can be done by giving preferred stock.
Here, startup valuation is done on the basis of market size, proof of concept, executive team quality, progress made with seed capital, and risk involved. Generally, approximately 2 million to 15 million are raised by Series A, however, the number has increased on average because of high recent tech industry valuations. Some of the popular venture capital firms participate in Series A funding are Sequoia, Benchmark, Greylock, Times Internet, etc.
See Also: How To Fund Your Startup?
One such startup that flashed in the recent news was Shuttl, founded by IIT Delhi alumni Amit Singh & IIT Kanpur alum Deepanshu Malviya, for raising $20M in fund. Now, this fund will be used by startup to inflate Shuttl service to new cities and strengthen its technology platform and network. Amit Singh, co-founder of Shuttl, said,
“We exist to solve the office-commute problem while positively impacting issues like congestion, pollution and safety. We have progressed in this direction in partnership with Car-Free Day and Rapid Metro in easing out last mile connectivity and daily commute for users. We believe buses are the most space efficient way to commute and we have added a technology layer on to them to build what could become a template for smart cities in India and abroad.”
[updated on 16-Feb-16] Shuttl Crosses 1 Million Rides Milestone In 10 Months
One of the largest bus-aggregators in India, Shuttl offers over 15000 rides per day. Recently, the company stated that it has crossed one million rides across the Delhi-NCR region. This feat has been amassed by the start-up in less than 194 days of its operations.
From being an intra-city to a pan Delhi-NCR public transit service, Shuttl has seen massive transformation.
The company stated that all this transition of commuters has meant that more than 4700 cars are off the road and thus, about 5 million rupees of fuel saved each day. Around 50% of users are choosing this service to board a bus from Gurgaon, 33% from Noida and 17% from Delhi and rest of NCR.
Shuttl co-founder and CEO, Amit Singh stated that,
It’s been a phenomenal ten months for the team. The public has embraced Shuttl beyond our expectations and the kind of growth we have achieved is remarkable. While we are excited about our performance to-date, there is much to be done in the coming months. Milestones like these are valuable but what really brings us joy is to see how we’re all waking up to the power that rests in our hands – the power to lead our cities to a healthier future by commuting wisely.
What people like the most about a Shuttl is it enables to generate an e-ticket to confirm a seat in the ride. The company stated:
The increasing traffic woes and pollution has led to the birth of Shuttl as a greener and smarter transport alternative.
Like Shuttl, there are many other startups that got funding in 2015 to expand their services, such as:
Glovo, an E-Butler app, allows to order or deliver anything around Spain with just a few minutes. Glovo’s Courier Delivery App makes things simpler. Recently, Glovo has picked up €2M in funding to expand its service at the great extent.
Another is ftcash app that makes payment for daily utilities like Milkman, Newspaper, Tuitions, fruits and vegetables, etc. through credit and debit card. Recently, ftcash got funded of US $5 Lacs from investors and now, they are going to expand their app’s functionality.
Like these startups, many startups are getting funding from investors. However, the money will not help to expand your startups, it just propels with more force in whichever direction you want to go.
If you really need a help of experts, who will reach your startups to the next level, we can take your startup to bloom.
See also: Inc42 Lists Space-O Amongst The Best Startup Hubs
Get your free consultation now