Abhibus appoints Kotak for raising $40 million from PE funds

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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel