Routematic raises $40 million in funding round

NEW DELHI: Business-to-business ride services company Routematic has raised $40 million in a funding round led by venture capital firm Fullerton Carbon Action Fund and Shift4Good, senior company officials said on Wednesday.The company plans to use the fund to strengthen its business matrix and expedite its journey towards public listing, Founder and CEO Sriram Kannan said."We have signed a shareholder agreement for a $40 million fundraise. The fund will come in two tranches," he said.Routematic provides an AI-based technology platform to manage the commute of employees. The company's platform optimizes service routes and enhances fleet efficiency by boarding employees of different corporations as per demand. Kannan said the company has services in 23 cities in India.The company is planning to foray in overseas markets as well as expand deeper into top 5 cities -- Bangalore, Pune, Hyderabad, Chennai and Delhi NCR."We are looking to go towards an exit event, which is an IPO. This funding would help us get there much quicker than what we can do organically. The corporate transport market is going towards this managed services model. We are helping corporates in optimizing their employees travel cost as well as eliminating several cost layers engaged in its management," he said.Routematic's next phase focuses on establishing city-level command centers that will enable demand-responsive fleet management at scale.Routematic co-founder and executive director, Kavitha Ramachandragowda said the company doesn't plan to own any assets but it will facilitate driver partners.She said Routematic has just started discussion to rope-in driver partners from electric vehicle-based beleaguered firm BluSmart but it is at a very initial stage.Talking about financials of the company, Ramachandragowda said "We expect to close the fiscal year 2024-25 with over 50 per cent growth at around Rs 180 crore." The company had posted revenue of around Rs 116 crore in 2023-24.