RailYatri to bring 'intrcity' bus service to Mumbai

RailYatri.in, the four-year-old start-up backed by Infosys co-founder and former UIDAI chairman Nandan Nilekani, is set to launch its branded bus service offering 'intrcity' in the Mumbai market. Stelling Technologies, which has also raised $12 million funding from the likes of Omidyar Network, Bloom Ventures, and Helion Ventures among others, is already running in 12 cities and 30 key routes across India's north, south, east and western regions. However, this will be the first time that the intrcity offering will be made available in the Indian commercial capital.

Speaking exclusively to DNA Money, Manish Rathi, co-founder and chief executive officer, RailYatri.in, said the buses are getting ready as we speak and services will begin shortly. "We will start with two buses on the Mumbai – Ahmedabad route. The number of bus services will be increased gradually and new routes will be added as well," said Rathi, adding that intrcity will begin operations within a month from now.

RailYatri.in began operations as a research-based travel discovery portal and gradually added the transaction (rail ticket bookings) part on the portal. It currently receives 20-22 million users every month who visit the site seeking information about trains, ticket availability, and bookings. Clocking monthly turnover of Rs 20 crore, the business is still in the investment stage.

"We built this platform initially to provide people with information and decision-making ability. It's simply a mechanism to choose like 'should you take this train or that train', 'which train has a better chance of you getting a confirmed ticket', 'which train has a good record of reaching on time' and things like that. These were the kind of decisions that people make before their purchase and we helped while also enabling a train ticket purchase. Of the total 22 million visitors, the conversion/transaction rate is about 4% at present," said Rathi, adding that the commerce/transaction part was introduced only two years ago.

As for the intrcity offering, the bus service was started to offer travelers another option to reach their respective destination without compromising on the quality and experience. According to company management, their internal data showed that the number of people choosing the bus option was very low compared to expectations.

"That's when we started finding out that people trust trains because no matter what we think about it, it gives you what is promised, that there'll be a berth, a toilet, I know what the structure will be like, there's a platform where I can go and stand, etc. Especially senior citizens and ladies, they trust trains no matter what. If you ask them why don't you take the bus? 'I don't know whose bus it is, I don't know if it has everything I need, etc.' there's a resistance to start coming towards the bus, so that's the thing we saw," said Swapnil Tripathi, chief business officer, RailYatri.in and intrcity by RailYatri.in.

A smart bus, the intercity offering caters to routes that have huge demand on the train and long waiting list problem. The buses were started parallel to the trains and at convenient schedule in accordance with the train timings. Akin to any branded service, the buses provided on the platform by operators follow a set build and quality standards, safety and security features with GPS and CCTV, washroom facility, well-trained staff manning the bus and so on. The company is also launching air-conditioned waiting lounges with drinking water and wi-fi internet facilities and mobile/ laptop charging points for an enhanced experience.

"The first such lounge has been launched in Lucknow. We also have a crew to take the travelers to the bus whenever the bus is ready for boarding and departure," said Rathi, adding that the company plans to deploy 5,000 buses across 1,500 routes going forward.

While the company has not fully deployed the money it has raised in the past, the management is in continuous discussion with potential investors for future funding requirements. "We are talking to people in the market, and there has been some interest. We will be looking to raise upwards of $10 million," said Rathi.