Key Highlights:
- Chalo, an Indian business has purchased Amazon-backed app-based office commute bus aggregator Shuttl in an all-cash transaction.
- Chalo stated that it will continue to utilize Shuttl’s branding.
- Dubey stated that he had been in contact with Shuttl’s Singh for several years, but the two just started talking about a deal two months ago.
Chalo acquires Amazon-backed bus aggregator Shuttl
Chalo, an Indian business that is digitizing bus journeys and recently garnered $40 million in funding, has purchased Amazon-backed app-based office commute bus aggregator Shuttl in an all-cash transaction.
Mohit Dubey, founder, and CEO of Chalo, said the acquisition of Shuttl, which operates thousands of buses aimed at working professionals, will help his startup gain a presence in many parts of the country, including metro cities, broaden the technology and product offerings, and boost the firm’s overseas expansion efforts.
“Shuttl and Chalo are the businesses that are set to become the world’s largest mobility firms.” “I wish the pandemic had not happened, but it has allowed two firms with similar goals to join together,” he said in an interview.
Dubey declined to reveal the financial specifics of the transaction but said Shuttl co-founder and CEO Amit Singh has consented to continue his adventure. Chalo stated that it will continue to utilize Shuttl’s branding.
Acquisition to help firm regain presence
“We started by attempting to ease the suffering of daily commuters.” In the process, we created a category and inspired people from all over the world to do the same. For us, it’s a bittersweet time. “We think Shuttl’s team and legacy will thrive as well under the new setup,” Singh said in a statement.
It’s a bittersweet day for Shuttl investors as well. To confront the pandemic, the firm had been unable to acquire a fresh round of funding and had reduced its employees. For months, rumors circulated that Shuttl was closing its doors.
According to data intelligence platform Tracxn, Shuttl has raised more than $97 million in a succession of financing stock and loan transactions. Amazon, Times Internet, Sequoia Capital India, Lightspeed Venture Partners, and Toyota are among the company’s investors.
Chalo stated that the entire present Shuttl team, including numerous important executives who have been with the company from its inception, will remain in their positions.
Dubey stated that he had been in contact with Shuttl’s Singh for several years, but the two just started talking about a deal two months ago.
The stakes are high in India’s $20 billion bus business, which is twice the size of cabs. Bus journeys are more accessible to the country’s larger masses, however, there are now only approximately three buses for every 10,000 people in India.
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