HYDERABAD: Online bus ticketing platform Abhibus is in talks with a few venture capital firms to raise around $15 million by divesting some 25% stake, valuing the company at around Rs 450 crore, said two persons in the know of the talks. The bus aggregator firm, which has appointed merchant bankers for the negotiations, hopes to sign the term sheet and complete the due diligence process and fundraising by December-end, they said, while seeking anonymity.
“The Bengaluru-based boutique investment banker IndigoEdge has been hired to help the Abhibus management in the negotiations with the prospective investors,” said one of the persons quoted above.
“Abhibus’ competitor and the industry leader redBus was acquired by the e-commerce firm Ibibo for around Rs 600 crore – nearly equivalent to their gross merchandise volume (GMV),” said another person, adding that “Going by the market share of Abhibus, which had reported around Rs 600 crore of GMV last year, there could be around 30% discount on valuation at around Rs 450 crore.”
Earlier, Abhibus had raised Rs 28 crore in all from half-a-dozen high net worth individuals in three tranches – Rs 3 crore in 2009, Rs 9 crore in 2012, and Rs 16 crore in 2016. “The HNIs together hold a majority stake of around 55%, while the founder Reddy and associates have around 45% stake in the company now,” said one of the persons quoted above, adding that after funds mobilization of around $15 million by divesting a stake of around 25%, Reddy will end up with around 35% equity, while the HNIs will hold around 40%.
