Abhibus.Com appoints Kotak Investment Banking to raise $40mn

Hyderabad-based software and services provider to fleet owners Abhibus.Com has appointed Kotak Investment Banking for raising USD 40 million from PE funds.
The funds will be used to support the company's expansion plans and increase their brand presence in India, it said in a statement.
In the first phase towards fund raising, the company is expecting to raise USD 10 million and expecting to close the deal in the next three to four months.
"Bus ticketing is a Rs 25,000-crore industry with the southern India region contributing as much as 60-70 per cent. Of the Rs 25,000-crore, e-ticketing contributes only 15 per cent at the moment. This is expected to increase to 40 per cent in the next two years," said Sudhakar Reddy Chirra, founder and CEO, Abhibus.Com.

He said, "To remain upbeat on the expected growth rate, we have laid the expansion plans and fund raising would support our growth plan. We are happy with our association with Kotak Investment Banking and the response is overwhelming from PE funds, but we cannot share details at this stage.