Chalo, an Indian firm that is digitizing bus journeys and recently garnered $40 million in funding, announced on Tuesday that it has acquired Amazon-backed app-based office commute bus aggregator Shuttl in an all-cash deal.
Mohit Dubey, the founder, and CEO of Chalo said the acquisition of Shuttl, which runs thousands of buses aimed at working professionals, will help his company expand across the country, including metro cities, broaden its technology, and product offerings, and accelerate its international expansion efforts.
“Shuttl and Chalo are the companies on track to become the world’s largest mobility companies. In an interview with TechCrunch, he remarked, “I wish the pandemic hadn’t happened, but it has allowed two firms with similar goals to come together.”
The financial terms of the sale were not disclosed, but Dubey said Shuttl co-founder and CEO Amit Singh has consented to continue his adventure. Shuttl’s branding will continue to be used by Chalo, he said.
“We set out to relieve daily commuters of their suffering. We ended up creating a category in the process, as well as motivating others from all over the world to do the same. For us, it’s a bittersweet moment. In a statement, Singh added, “We believe Shuttl’s team and legacy will survive as well in the new set-up.”
It’s a bittersweet day for Shuttl investors as well. To deal with the epidemic, the firm had been unable to acquire a fresh round of funding and had reduced its employees. For months, rumors about Shuttl closing stores have been circulating.
According to data intelligence platform Tracxn, Shuttl had raised over $97 million in a succession of financing stock and debt transactions. Amazon, Times Internet, Sequoia Capital India, Lightspeed Venture Partners, and Toyota are among the company’s investors.
Shuttl’s entire present team, including numerous important executives who have been with the company since the beginning, will remain in their positions, according to Chalo.
Dubey said he’s known Shuttl’s Singh for a long time, but the two only started talking about buying the company two months ago.
India’s $20 billion bus business, which is nearly twice the size of cabs, is at stake. Bus commutes are more accessible to the general public, however there are still only roughly three buses for every 10,000 people in India.
