Rising demand from tier-2 and tier-3 cities is emerging as a key driver of growth in India’s intercity bus market, with technology-led platforms such as IntrCity SmartBus scaling up to tap this opportunity.
The Noida-based company operates over 700 daily services across more than 690 routes in 18 states, serving around 0.02–0.025 million passengers a day. A growing share of this demand is coming from non-metro corridors, where improving road infrastructure and limited rail and air connectivity are boosting reliance on buses.
“We are seeing strong traction on routes connecting major cities with tier-2 and tier-3 towns, where buses often remain the most direct and flexible travel option,” said Manish Rathi, CEO and co-founder.
Digital Shift
The demand shift is also reflected in the company’s financial performance. IntrCity reported revenue of about Rs 500 crore in FY25, up 50% year-on-year, and is on track to reach Rs 720–750 crore this year. Bookings have surged, growing 77% between 2023 and 2024 and a further 67% the following year, highlighting a clear consumer shift towards organised and reliable travel. Despite this momentum, the intercity bus market remains largely fragmented, with fewer than 10,000 buses in the organised segment. Tech-enabled platforms account for only around 15% of the market, indicating significant headroom for formalisation.
IntrCity’s asset-light mode partnering with over 80 operators while managing technology and service quality has enabled rapid expansion across high-growth corridors. The company is also investing in features such as GPS tracking, structured boarding and enhanced safety protocols to improve customer experience.
Scaling Through Asset-Light Innovation
Regionally, southern India contributes 55% of revenue, followed by the North at 20% and the West at 15%, underlining the importance of regional connectivity. The company has also stepped up safety initiatives, including proactive confirmation calls for solo women travellers, as female ridership continues to rise.
