Chalo, an Indian startup that is digitizing bus commutes in India and which recently raised $40 million in a financing round, has acquired Amazon-backed app-based office commute bus aggregator Shuttl in an all-cash deal, the two said on Tuesday.
Chalo founder and chief executive Mohit Dubey said the acquisition of Shuttl, which operates thousands of buses aimed at working professionals, will help his startup gain presence in many parts of the country including metro cities and also supercharge the two firms’ overseas expansion efforts.
“Shuttl and Chalo, these are the firms that are positioned to become the largest mobility firms in the world. I wish the pandemic had not happened, but it has allowed the two companies with a similar focus to come together,” he said in an interview with TechCrunch.
Dubey declined to disclose the financial terms of the deal, but said Shuttl co-founder and chief executive Amit Singh has agreed to continue his journey. Chalo will continue to use Shuttl’s branding, he said.
“We started out to take the pain away from daily commuters. In the process we ended up building a category, and inspiring others from different parts of the world to do the same. It’s a bittersweet moment for us. We believe the team and legacy of Shuttl will thrive equally well in the new set-up,” said Singh in a statement.
Shuttl had raised over $97 million in a series of financing rounds, according to data intelligence platform Tracxn. The startup counts Amazon, Times Internet, Sequoia Capital India, Lightspeed Venture Partners, and Toyota among its backers.
This is a developing story. More to follow…