Bengaluru-based intercity electric bus startup Fresh Bus has raised ₹875 million (~$10.42 million) in a Series A funding round.

The financing was led by the international early-stage transportation-focused VC fund Maniv. Shell Ventures, Alteria Capital, and existing investor Riverwalk Holdings also participated in the funding round.

Fresh Bus will utilize the funds to launch 150 e-buses, expand its network to 15 new routes, enhance its technological capabilities, and strengthen its strategic team to drive growth.

Founder and CEO of Fresh Bus Sudhakar Chirra said, “We expect to scale to 1,000 electric buses in pan-India over the next four years, generate skilled employment opportunities for thousands of people, and offer a green alternative for mass road transportation.”

Robert Linck, Shell Ventures’ Chief Investment Officer, said electrifying mobility in India offers a unique chance to improve air quality, cut emissions, and reduce costs. “Fresh Bus leads in electric intercity travel, driven by a data-driven, customer-focused approach.”

Fresh Bus was previously backed by industry leaders, including Kunal Shah, Founder and CEO of CRED; Sudarshan Venu, MD of TVS Motors; and Deepak Garg, CEO and Founder of Rivigo.

In 2023, Fresh Bus secured ₹260 million (~$3 million) in seed funding from ixigo, an AI-based travel app, to launch inter-city electric bus services across India. The company had previously said that over the next 2-3 years, it planned to scale operations to cover 1,000 buses, which would cover 375 km on a single charge.

A bidding process conducted by Convergence Energy Services Limited (CESL) last year showed that e-buses as a service were the most cost-effective approach to urban public transport with or without subsidy. CESL estimated that with the government’s increasing focus on e-mobility, India would require over 100,000 e-buses by 2030.

The government last year approved the “PM-eBus Sewa” program, under which 10,000 e-buses would be deployed across the nation. The program has a budget of ₹576.13 billion (~$6.9 billion).