Noida-based RailYatri has raised fresh fund in its Series B round. The funding was led by impact investor Omidyar Network along with existing investors Nandan Nilekani, early-stage venture capital firm Blume Ventures, and homegrown venture capital fund Helion Venture Partners also participated in the round.
The investment amount couldn’t be verified, however, the capital infusion was expected to be about $10 million (as per the ET report).
With the fresh funding, the startup plans to expand into hotel and holiday packages for which it is hiring across verticals.
Founded in 2014 by Kapil Raizada, Manish Rathi and Sachin Saxena, RailYatri is a train-travel app startup which provides comprehensive information on trains, passenger amenities at stations, platforms and trains’ speed as well as alerts via mobile app, web and SMS. The startup also enables booking of essential services such as high-quality onboard meals, bus tickets, budget rooms, etc.
Commenting in the funding, Manish Rathi, Co-founder and CEO RailYatri said, “We are overwhelmed by the travellers response to our platform, and at the current growth rates we expect to be India’s largest traveller destination this year. Our low cost of acquisition allows growth with margins and RailYatri is now expanding into budget hotels and packages, for which we are aggressively hiring in all verticals.”
Since its inception, the startup has grown significantly. It has over 12 million of active users on its online platform while RailYatri’s offline reach extends to over 100 cities with tier 2 & 3 cities driving growth for the firm. The company is now looking to use the capital to drive an annual rate of 10 million transactions this year.
Earlier in January, RailYatri acqui-hired food technology firm YatraChef to boost its food-on-rail service, counts train tickets, bus tickets, and food.
Other travel-related startups operating in the same domain like RailYatri include TravelKhana, IRCTC, KhanaGaDi, RailRide, etc. However, with the current plan, the company will compete with portals such as MakeMyTrip, Cleartrip, Goibibo, Yatra and Goomo, which provides both ticketing and accommodation services.
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