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 on over 690 routes in 18 states, serving around 20,000-25,000 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.
The demand shift is also reflected in its 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 another 67% the following year, highlighting a consumer preference for organised & reliable travel.
From Fragmented to Formal
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.
Regional Dominance
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.
Regionally, southern India contributes 55% of revenues, followed by northern India 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.