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Business Standard
07-05-2025
- Automotive
- Business Standard
Bengaluru-based Routematic raises ₹340 cr, defies electric vehicle dip
Bengaluru-based Routematic, India's leading artificial intelligence-driven corporate transport-as-a-service player, which provides its services to over 300 companies, on Wednesday announced that it has secured ₹340 crore in a funding round led by Singapore-based Fullerton Carbon Action Fund and French green fund Shift4Good. Ostara Advisors, India's leading climate-technology investment banking firm, was the exclusive financial advisor to Routematic on this transaction. The move is important as it comes at a time when the app-based mobility space — both business-to-business (B2B) and business-to-consumer (B2C) — has been under a cloud, following the financial crisis and closure of BluSmart Mobility Services, which was based primarily on electric vehicles (EVs). Founded in 2013, Routematic provides a safe and predictable commute experience to over 300,000 employees, undertaking 5 million trips a month. India's employee transportation market is expected to reach $13.2 billion by 2030. Says Sriram Kannan, founder and chief executive officer of Routematic, 'With the new fundraise, we will be expanding to the top five cities in the country, which account for 85 per cent of the corporate transportation business. Currently, we are in Pune and Bengaluru; we will now expand to Hyderabad, Delhi, and Chennai.' Currently, 10 per cent of the fleet consists of EVs, but Kannan says demand is much higher. The plan is to increase the share of EVs to 30–35 per cent in a few years and shift to a fully electric fleet by 2028–30, in line with clients' plans to expand their green footprint. Kannan says the focus is on driving efficiency rather than just top-line growth, which has already helped the company achieve profit after tax. He says the corporate transportation business has two segments — B2B and B2C. The former is already valued at $4 billion annually in India, and Routematic currently holds only a 5 per cent market share. The goal is to increase this share to 20–25 per cent in three to five years through the fundraise. The company also has a presence in the B2C segment through its COCO Rides brand, for which it has allocated 15 per cent of the funds for expansion. 'We have already seen large campuses wanting to work with us, and we've landed a few large deals. So, COCO Rides is also projected to account for about 15–20 per cent of our total revenue over the next three to four years. COCO Rides is B2C, but you could also call it B2B2C (business-to-business-to-consumer),' he says. This market is estimated to be larger, at $14–16 billion per annum. Their strategy is differentiated from Ola's or Uber's in the B2C space. COCO Rides services are available only to customers who work in companies with which Routematic has a corporate transportation tie-up. Only these users can access the service through the app and pay directly for their rides. This model also increases the utilisation of Routematic's vehicle assets. The COCO model concentrates on high-volume areas, with partnerships including real estate majors such as Brookfield and information technology hub developers. Routematic had earlier raised roughly $6 million across previous investment rounds led by Blume Ventures, VAMM Ventures, and Bosch between 2015 and 2021.
Entrepreneur
07-05-2025
- Automotive
- Entrepreneur
Routematic Raises USD 40 Mn Series C from Fullerton and Shift4Good to Drive EV Expansion and City Growth
The capital infusion will be used to expand operations across India's top five cities, scale the fleet to 10,000 vehicles by March 2026, and convert 30% of its fleet to electric vehicles (EVs). You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Corporate mobility solutions provider Routematic has secured USD 40 million in a Series C funding round led by Fullerton Carbon Action Fund and Shift4Good, with Ostara Advisors acting as the exclusive financial advisor. The capital infusion will be used to expand operations across India's top five cities, scale the fleet to 10,000 vehicles by March 2026, and convert 30% of its fleet to electric vehicles (EVs). The company also plans to establish new city-level command centres, with Delhi-NCR next on the radar after successful rollouts in Bengaluru, Pune, and Hyderabad. Sriram Kannan, Founder and CEO of Routematic, said, "We are grateful for our investors' trust as we drive the future of corporate transportation. This investment will enable us to capitalize on the growing demand and further strengthen our leadership in sustainable corporate mobility." Founded in 2013, Routematic offers AI-driven corporate mobility solutions, combining SaaS-based commute management with Transport-as-a-Service (TaaS). With operations in over 23 Indian cities, Routematic services 300+ enterprise clients and handles 5 million monthly trips, offering safe, reliable, and sustainable commuting options to 300,000+ users. Routematic's platform automates demand-supply matching, dispatch, and dynamic routing, significantly reducing transport costs and enhancing commuter safety. The company has previously raised about USD 6 million from investors including Blume Ventures, VAMM Ventures, and Bosch. Kavitha Ramachandragowda, Co-founder and Executive Director, added, "This investment enables us to scale new heights. With AI at our core, we will continue to create safer, more efficient, and environmentally responsible commuting solutions." Fullerton Fund Management's Huck Khim Tan highlighted Routematic's role in decarbonisation and called it "a profitable, fast-growing business solving critical challenges in urban mobility." Shift4Good's Sebastien Guillaud praised the platform's real-time automation, saying it "sets a new benchmark in a traditionally low-tech sector." Routematic is poised to lead India's transition to green, tech-enabled urban mobility, addressing corporate ESG goals while redefining the future of employee commutes.
Time of India
07-05-2025
- Automotive
- Time of India
Routematic raises $40 million in funding round
NEW DELHI: Business-to-business ride services company Routematic has raised $40 million in a funding round led by venture capital firm Fullerton Carbon Action Fund and Shift4Good, senior company officials said on company plans to use the fund to strengthen its business matrix and expedite its journey towards public listing, Founder and CEO Sriram Kannan said."We have signed a shareholder agreement for a $40 million fundraise. The fund will come in two tranches," he provides an AI-based technology platform to manage the commute of employees. The company's platform optimizes service routes and enhances fleet efficiency by boarding employees of different corporations as per demand. Kannan said the company has services in 23 cities in company is planning to foray in overseas markets as well as expand deeper into top 5 cities -- Bangalore, Pune, Hyderabad, Chennai and Delhi NCR."We are looking to go towards an exit event, which is an IPO. This funding would help us get there much quicker than what we can do organically. The corporate transport market is going towards this managed services are helping corporates in optimizing their employees travel cost as well as eliminating several cost layers engaged in its management," he next phase focuses on establishing city-level command centers that will enable demand-responsive fleet management at co-founder and executive director, Kavitha Ramachandragowda said the company doesn't plan to own any assets but it will facilitate driver said Routematic has just started discussion to rope-in driver partners from electric vehicle-based beleaguered firm BluSmart but it is at a very initial about financials of the company, Ramachandragowda said "We expect to close the fiscal year 2024-25 with over 50 per cent growth at around Rs 180 crore." The company had posted revenue of around Rs 116 crore in 2023-24.
