Delhi-based intercity EV bus startup LeafyBus has raised $4.1 million in pre-Series A funding. The investment came from Enetra EV, a company backed by Singapore’s Impact Capital Asia Management (ICAM). The new capital gives LeafyBus the strength to grow its electric bus fleet and expand to more cities in North India.
LeafyBus started its journey in 2023. Founders Rohan Dewan and Animesh Sharma saw a gap in India’s long-distance travel sector. They noticed that while airlines and short-distance ride-hailing companies had started exploring cleaner energy, intercity buses still relied heavily on diesel. With LeafyBus, they set out to change the experience of intercity travel by offering modern electric buses that are cleaner, quieter, and more comfortable.
Current Routes and Operations
LeafyBus now runs electric buses on Delhi–Dehradun and Delhi–Agra routes. Both routes attract strong passenger demand due to frequent travel by students, office-goers, and tourists. The company reports high occupancy levels, which shows that travelers are willing to choose EV buses over diesel buses for better comfort and sustainability.
The startup wants to add 100 more buses within the next two years. It has announced plans to expand services to Chandigarh and Jaipur in its next growth phase. Both destinations fall in high-demand corridors and offer the company a chance to strengthen its network in Northern India.
Unique Charging Infrastructure
LeafyBus positions itself as the only long-distance operator in India using a 360 kW fast-charging station. This high-capacity charging solution cuts down the time required to recharge buses, allowing the fleet to make more trips each day. The startup says its charging stations offer a major edge compared to rivals that rely on smaller capacity chargers.
For its fleet, LeafyBus has partnered with OEMs like JBM and Azad India Mobility. It also plans to work with Tata Motors and Eicher Motors for future bus supply. By engaging with multiple manufacturers, the startup ensures flexibility in vehicle design and pricing.
Hybrid Fleet Model
LeafyBus follows a hybrid fleet ownership model. It owns about 20–25% of its buses and leases the rest. This approach reduces upfront costs while giving the company operational control. Leasing also allows the startup to scale faster, since it does not depend only on its balance sheet to acquire vehicles.
The combination of owned and leased assets creates a balance between stability and growth. The owned fleet secures long-term capacity, while the leased fleet gives flexibility to adjust based on demand.
Revenue Targets and Market Ambitions
LeafyBus has set an ambitious target of generating ₹75–80 crore in revenue by FY26. To achieve this, it plans to grow its fleet size, expand into new routes, and increase occupancy rates. The company expects demand for intercity EV buses to rise steadily as more passengers seek eco-friendly travel and governments push for lower emissions.
The funding round gives LeafyBus the resources to invest in fleet expansion, charging infrastructure, and route development. Investors like ICAM see the long-term potential in the EV mobility sector, especially in countries like India with huge intercity travel markets.
Competition in the EV Intercity Space
LeafyBus faces stiff competition from both established and new operators. The list includes NueGo, Fresh Bus, Zingbus, Yolobus, FlixBus, and Redbus. Each competitor brings different strengths. For example, Fresh Bus, backed by ixigo, raised $10.5 million in Series A funding last year. Zingbus secured $7 million from bp Ventures. These rivals focus on expanding quickly across multiple states and building brand recognition.
LeafyBus wants to differentiate through its charging technology, comfort features, and hybrid fleet model. The startup believes passengers will prefer fast-charging EV buses with reliable schedules over traditional buses that create higher pollution and noise.
Growth of India’s EV Market
The timing of LeafyBus’s expansion matches well with the rise of India’s EV sector. The Indian EV market is projected to grow from $23.38 billion in 2024 to $117.78 billion by 2032, at a CAGR of 22.4%. The government has announced incentives, subsidies, and stricter emission norms, all of which push both companies and consumers toward clean energy.
In intercity travel, EV buses also help operators save on fuel and maintenance costs. Over time, the total cost of ownership becomes lower compared to diesel buses. This financial benefit adds to the sustainability advantage and makes the model more attractive for investors and operators alike.
The Customer Experience
LeafyBus does not only focus on electrification. It also invests in improving customer experience. The buses include features like spacious seating, air-conditioning, and onboard entertainment. The startup wants to position itself as a premium yet affordable alternative to traditional buses.
With rising concerns about pollution and long travel hours, passengers increasingly value clean and quiet travel options. LeafyBus aims to capture this sentiment by offering comfort without high ticket prices.
The Road Ahead
The next two years will prove crucial for LeafyBus. If it succeeds in adding 100 buses and capturing major routes like Delhi–Chandigarh and Delhi–Jaipur, the company will emerge as a strong contender in the intercity EV travel space. Success will also depend on how well it manages operational challenges like charging infrastructure, driver training, and maintenance.
Investors expect LeafyBus to scale steadily without burning cash too quickly. The hybrid model should give the company more flexibility than startups that rely fully on owned fleets. At the same time, competition from well-funded rivals like NueGo and Fresh Bus will keep pressure high.
Conclusion
LeafyBus represents a fresh wave in India’s intercity mobility story. Its focus on clean energy, fast-charging technology, and customer comfort aligns well with the country’s transport future. Backed by strong investors, an ambitious revenue plan, and a clear strategy for fleet growth, the startup looks set to make a strong mark in the market.
If LeafyBus executes well, it could inspire more operators to shift toward electric intercity buses, helping India meet its sustainability targets while transforming long-distance travel for millions of passengers.
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