IntrCity SmartBus plans to double capacity to 7.5 lakh passengers per month, ₹700 crore in revenue by FY26

Bus operator IntrCity SmartBus plans to double its capacity to 7.5 lakh passengers per month, and targets three billion passenger kilometres per month, and ₹700 crore in revenue by FY26.

“We are aiming to double our current passenger capacity and achieve three billion passenger kilometres per month within the next two years,” Kapil Raizada, co-founder and director of IntrCity, tells Fortune India, on the sidelines of the company closing a ₹250 crore Series D funding round led by A91 Partners.

Raizada also revealed that IntrCity SmartBus has been experiencing 50% annual growth over the past two years across all segments and regions. While GST rate cuts have increased consumers’ spending power, Raizada attributed the growth to broader economic growth, which has propelled both business and leisure travel.

The recently concluded festive season has been consistently strong for IntrCity SmartBus, with 50–60% year-over-year growth in services. However, he also said that non-festive business and regular travel primarily drive year-round demand. With the fresh funds, the bus operator plans to enhance the overall travel experience by improving vehicle quality, punctuality, and safety, aiming to increase operational metrics from 90% to 99%. “The funds would allow for expanding services to new areas and generally upgrading various aspects of the travel experience in India,” adds Manish Rathi, co-founder and CEO, IntrCity SmartBus.

IntrCity SmartBus—which operates in a hub-and-spoke model—identifies 14-15 economic hubs and connects them to tier 2 and tier 3 cities. Rathi said that this helps IntrCity gradually increase routes across the country by expanding connections from existing hubs to new spokes, while primarily focusing on expanding within current operational areas rather than entirely new geographies.

The bus operator, according to Raizada, also observed a systemic increase in travel to popular religious places like Katra, Prayagraj, Varanasi, Tirupati, and Shirdi, with regular and dependable services now running to these destinations from major cities. On the recent accidents involving sleeper buses, Rathi said that specific events prompt reflection; their focus on safety is continuous and includes driver training, pre-boarding communication, and bus construction, aiming to mature as the airline industry has.

Raizada averred that a significant challenge IntrCity Smartbus faces is the lack of appreciation for bus travel within the broader ecosystem, where city planning often prioritises cars over public transportation, leading to inadequate infrastructure at bus terminals compared to airports. He highlighted the need for a mindset shift to prioritise public transportation, given the extensive investment in highways, and requested support in advocating for this change.

When asked about IntrCity Smartbus’s plans to adopt electric buses in its fleet, Raizada said that they explained that they are waiting for suitable electric vehicles that can meet their average trip distance of more than 500 kilometres, as current models are mainly designed for intra-city or short-route travel. “Engineering constraints like weight and fire risk for long-distance highway travel are still being addressed in EV product development, though we are agnostic to fuel type and anticipate cost efficiencies once suitable technology emerges,” Rathi added.