Commut, which runs a minibus shuttle service for office goers, has raised $200000 (about INR 1.3 crores) from 50K Ventures. It will also have Redbus founder Sudhakar Pasupunuri on its board from now on. The fresh funds will be deployed towards building its team, strengthening technology, and for further expansion.
Hyderabad-based Commut was founded in 2015 and offers a mobile-based minibus service for daily office commuters in Hyderabad. Customers can book air-conditioned mini buses at very affordable prices on about 50 popular routes through Commut app.
The company claims to have over 5000 registered users on its platform and 17000 bookings since its inception and serves over 500 users per day.
With this round of funding, we hope to reach 2,500+ rides per day in three months and 5,000+ rides per day by the end of the year,
said Prasanth Garapati, co-founder, Commut .
Last month, Commut also acquired app-based cab service company H2O for an undisclosed amount to strengthen its service and increase its footfalls in the market.
After the immense popularity of taxi aggregators like Ola and Uber, bus pooling and shuttle services are increasingly becoming popular among users as well as investors.
Gurgaon based on demand bus service Shuttl recently secured $20 million in Series A from Lightspeed Venture Partners, Sequoia Capital and Times Internet. Launched in April 2015, it offers its service in more than 60 routes in Delhi-NCR region, connecting Delhi, Gurgaon, Noida, Faridabad and Ghaziabad. It has already crossed 1 million rides on its platform
Similarly, ZipGo offers bus shuttle service in Bangalore whereas Cityflo and rBus offer their services in Mumbai. Last year, Cityflo had also raised close to $750K from IDG Ventures for mapping bus routes in Mumbai and expansion to other cities.
However, these services are also having troubles with transport authorities for not having required permits to run shuttle services.
Zipgo suspended its operations in Bengaluru last month citing reason of “harassment” by transport authorities who had seized 200 vehicles of the company. Before that, in December 2015, Shuttl and Ola Shuttle also had to suspend their operations in Gurgaon for not having permits.