On-demand bus aggregation platform Shuttl has secured $20 million (Rs 135 crore) in funding to strengthen its technology and for expansion, according to its co-founder Amit Singh.
The funding round was led by Lightspeed Ventures and included Times Internet and existing investor Sequoia Capital. In June, Shuttl had raised $3 million in seed funding from a clutch of investors led by Sequoia.
Shuttl, which became operational eight months ago, will use the cash for strengthening its technology platform and algorithms for network optimisation, predictability, and scale to multiple cities beyond Delhi NCR, Singh told ET.
Singh said the idea for Shuttl came during his stint at Delhi Metro where he dealt with the problem of public commute.
"While piloting ideas on transport, we realised the incumbent opportunity in solving the problem of daily commute," Singh said. "There on we started building a platform that brought in predictability, trust and dignity to the consumer."
This fund infusion in Shuttl comes at a time when its competitors are at seed-stage of funding. The company has set a six-month target of 50,000 rides a day with 600-700 buses on the platform.
Offering about 15,000 rides a day, Shuttl users are emerging as a community with people engaging beyond the ride.
The price points for a ride range from Rs 20 to Rs 100. Since its inception, Shuttl has offered more than 800,000 rides.
"What excites Lightspeed about Shuttl is the opportunity for the company to have massive positive social impact by helping address the problems of transportation, safety and pollution. Solving daily travel in a safe, affordable and green way has great potential," said Bejul Somaia, managing director of Lightspeed India Partners Advisors. Somaia has also joins the Shuttl board.
Singh is an alumnus of IIT-Delhi and XLRI-Jamshedpur, while Shuttl co-founder Malviya is an alumnus of IIT-Kanpur and ISB Hyderabad and leads technology and data sciences.
According to Singh, the differentiator for Shuttl lies in its technology algorithms, including swipe on-boarding, conductor-less bus traveling and time slicing algorithms to match demand to supply.
"Based on extensive data modeling on traffic patterns, we are increasing our services and plying more buses on the right routes," Singh said.