Bangladeshi-based transport-tech startup Shuttle has raised $1.5 million in funding to expand its ride-sharing services and develop its mobile app.
In 2018, Shuttle started as a women-only ride-sharing service with less than one-third of the regular fare. The company manages to do this thanks to its concept of four-to-ten people sharing one car. Eventually, Shuttle received grants from both public and private investors, including Biniyog Briddhi, an Embassy of Switzerland-backed enterprise, Roots of Impact and LightCastle Partners.
Using its initial funding, the company grew its services to register 30,000 users, mainly students and office workers, on its platform. Shuttle later expanded its services to be more inclusive. It also began offering B2B ride-sharing services and has now served over 22,000 passengers in more than one million rides.
The company has partnered with over 50 organizations and MNCs to launch an upcoming service called “Shuttle for School,” which targets students in the Bangladeshi capital of Dhaka.
Shuttle’s mission to provide inclusive ride-sharing services
Currently, Shuttle is valued at $13.5 billion. Co-founder & CEO Reyasat Chowdhury explained that his company would use the funds to provide affordable and convenient transport for middle-income Bangladeshis. He also revealed that Shuttle planned to expand its team.
South Asia Tech, a logistics and e-commerce-focused venture capital, led the funding round, with participation from Bangladesh Limited, Bangladesh Angels Networks and Accelerating Asia. In total, Shuttle has raised $2.5 million since its inception.
“The new funding will help us expand our footprint across the country through further investments in tech, product and team,” Reyasat said.
South Asia Tech general partner Ashfaque Chowdhury said that the company supported Shuttle’s initiative and innovation to tackle transportation issues in the country.
“Shuttle’s focus on solving a major problem for middle-income consumers, with special consideration for women, truly caught our attention and we are thrilled to be supporting them in their mission,” Ashfaque said.
