Start-up success stories- Redbus – Online bus ticket service – Acquired by ibibi group
Bangalore based Redbus.in was acquired by ibibigroup for approx $ 100 Mn (Rs 600 Crores). This small start-up company has been founded in 2006 and within 7 years it could scale up to new heights. It featured in most 50 innovative companies in last year business magazine Fast Forward along with Apple, Facebook and Google.
What does Redbus business about?
Redbus.in is an online bus ticketing service. It is one of the largest bus ticketing platform issuing tickets for over 1 million per month tickets generated a gross turnover of Rs 600 Crores in last financial year. It has 600 employees. Redbus.in promoters are Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri. Redbus is part of Pilani soft labs founded in 2006 by these 3 BITS Pilani graduates.
How did they start this company?
In 2005, Sama has failed to get bus ticket from Bangalore to Hyderabad during Diwali festival. This was discussed with 2 other friends and they got this idea of starting online bus ticketing service. They have started Redbus.in which provides service across India.
Who has funded for expansion of Redbus?
Pilani Soft Labs has this flagship product Redbus. Redbus has raised $ 6.5 Mn in 2011 in a C-Series funding of Helion Venture Partners, Seedfund and Investor capital partners. Nasper which is part of ibibigroup from South Africa has been funding for more than 7 months for the growth of Redbus business operations.
What are the revenues for Redbus?
Gross turnover for previous financial year 2012-13 was Rs 600 Crores and in year 2011-12 it was Rs 350 Crores. However net turnover of previous financial was Rs 33 Crores. It took more than 5 years to break-even and in 2011-12 it turned profitable.
Why ibibigroup acquired Redbus?
Though several investment partners come forward to acquire Redbus, Nasper-ibibigroup has been constantly focusing on the strengths of Redbus. Finally ibibigroup discussed with the promoters and announced the acquisition of Redbus. Pilani soft labs has BOSS, a cloud based enterprise resource planning software for bus operators and seatseller, an inventory distribution platform for agents will be part of this acquisition. Sama and Padmaraju would continue to be part of Redbus after the acquisition. With this acquisition, ibibigroup would become one of the biggest online travel companies in India.
The story of Redbus.in shows that a start-up story can be successful if one has commitment towards he business. The acquisition is secondary part, but creating such innovative product and growing up to this level and servicing more than 1 million people per month is definitely a good start-up successful story. There are several start-up success stories in India and Redbus story would definitely boost energy for aspiring entrepreneurs.
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Team – Allbusinessideas.com