Chalo, an app that helps track the public transport, has announced the acquisition of Amazon-backed Shuttl as a part of its strategic move to foray into office-commuting space. The COVID-induced lockdowns and restricted movements had an impact on Shuttl and the company was actively looking out for a buyout. Shuttl counts SIG Investments, Amazon, Trifecta Capital, Sequoia Capital, Lightspeed India Partners and Times Internet as its investors.
Shuttl had a presence in international metros like Delhi-NCR, Kolkata, Hyderabad, Pune, Mumbai and Indian cities like Bangkok. It was fulfilling about 100,000 rides daily through its 2,000 buses. The acquisition news comes days after Chalo announced Series C funding of about $40 million.
Chalo said with this acquisition, the startup will accelerate its plans for an international expansion as Shuttl has a presence in Bangkok. Chalo will also enter large Indian metro cities where it was not present before.
Shuttl addresses the premium bus services market, targeted at office-goers looking for a more comfortable commute. It is, therefore, a natural extension for Chalo's stage carriage city buses business.
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Chalo's technology platform, which caters to point-to-point premium office commute buses, also augments Shuttl's city buses technology platform - providing a complete solution for all forms of bus services, the company said in a statement.
The premium office bus service will continue to use the brand name 'Shuttl'. Shuttl's current team, including key people who have been a part of the startup's core team since start, will continue to work as per their current roles.
We are delighted to join hands with the Shuttl team. We share a common passion to solve the daily commute problem, and we have strong synergies in our values and approach. We have great respect for the team and the business they built. Chalo and Shuttl were already the largest brands in their space. Together, we now fulfill more than 25 million rides per month and aim for further expansion in India along with international growth as well, Chalo said Mohit Dubey, co-founder and CEO of Chalo.
Amit Singh, co-founder and CEO of Shuttl, said the startup had 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 in the new set-up, Singh said.
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