Hyderabad-based Abhibus.com has appointed Kotak Investment Banking for raising $40 million from private equity funds. The funds will be used to support the company's expansion plans and increase their brand presence in India.
In the first phase towards fund raising, the company is expecting to raise $10 million and expecting to close the deal in the next three to four months.
Founded in 2007, Abhibus offers information technology solutions and services to the bus travel sector. It works with fleet owners to provide end-to-end solutions including online passenger reservation systems, e-ticketing system, fleet management solutions, vehicle tracking systems, passenger information systems and logistics management.
"To remain upbeat on the expected growth rate, we have laid the expansion plans and fund raising would support our growth plan. We are happy with our association with Kotak Investment Banking and the response is overwhelming from PE funds but we cannot share details at this stage", Abhibus chief executive officer, Sudhakar Reddy Chirra, stated in a press release on Monday
According to Chirra, bus ticketing is a Rs 25,000-crore industry with the southern India region contributing as much as 60-70 per cent. Of the Rs 25,000-crore, e-ticketing contributes only 15 per cent at the moment. This is expected to increase to 40 per cent in the next two years.
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