Bengaluru-based Mantis Technologies, which runs the online bus ticket booking services portal Travelyaari, is in advanced stages of closing a fresh round of funding.

Travelyaari has struck a deal with a foreign Venture Capital fund along with its existing investor Bennett, Coleman and Company Ltd. to raise about Rs.50 crore, according to sources. “The discussions are in advance stages and will be closed this month,” said a person with direct knowledge of the deal.

When contacted, Aurvind Lama, co-founder of Travelyaari, acknowledged that the company was in advanced discussions to raise funds. However, he declined to name the investor and other details. Till date, Travelyaari has raised about Rs.20 crore from various investors like Bennett & Coleman and Company Ltd. and Gujarat Venture Financial.

It also received funding from the Centre of Innovation, Incubation and Entrepreneurship of IIM Ahmedabad (IIM-A). Gujarat Venture Financial is the majority stakeholder in the company while BCCL is a minority stakeholder. The company was founded by two IIM-A graduates Aurvind Lama and Partha Sinha in 2007 and started commercial operation in 2008.

As per industry estimates, bus ticketing market in India is around Rs.60,000 crore, which includes both private and government-owned companies. Of the total ticket opportunity, only 10 per cent is done online and it is growing at 20 per cent annually.

The company will use the fresh funds to strengthen its presence in South India and compete with players like redBus.in, Paytm and Abhibus.com. Apart from providing online ticketing facility, Mantis Technologies also provides technology platforms for bus operators for ticket bookings. The company has tied up with Punjab and Himachal Pradesh State transport companies to provide platforms for online ticket reservation.

Image courtsey: thehindubusinessline