Bangladeshi transport-tech startup Shuttle has announced USD 1.5 million in new funding, bringing its total investment to USD 2.5 million to date. The company charges less than one-third the price of regular ride-sharing by clubbing 4-10 people together in sedans and minivans.
Shuttle's potential to change the consumer transport dynamics and reduce pollution in congested cities has earned its founders spots in the Forbes 30 under 30 Asia list, said a statement.
The round was led by South Asia Tech -- a growth-stage venture capital fund -- focused on logistics and e-commerce startups in South Asia. Other investors in the round include Startup Bangladesh Limited - the only government VC fund in the country, investors from Bangladesh Angels Network (BAN) and some existing investors, including Accelerating Asia.
Shuttle started its journey in 2018 with pre-seed capital from Robi Axiata Limited. The list of other previous investors includes SBK Tech Ventures, Accelerating Asia, The Ventures (South Korean VC), BAN and local/global angels.
In addition, the company also received an impact-matching grant from Biniyog Briddhi, a public-private development partnership (PPDP) between the Embassy of Switzerland in Bangladesh, Roots of Impact, and LightCastle Partners.
After its initial success with providing women-only services, Shuttle later added unisex and B2B offerings to bring convenient and affordable daily commutes for middle-income people in Bangladesh.
More than 30,000 university students and office-goers are registered on the Shuttle platform, with the majority being women. The company has also worked with over 50 organisations (B2B clients), including the country's largest multinational companies (MNCs).
Shuttle is also set to launch a new service, 'Shuttle for School' for students in Dhaka city, a milestone project initiated by Dhaka North City Corporation (DNCC) to reduce traffic congestion in the metro.
Shuttle's Co-founder and CEO, Reyasat Chowdhury, mentioned, "We are thankful to South Asia Tech and all other investors for believing in our vision of making daily commutes convenient and affordable for the middle-income people in Bangladesh."
"The new funding will help us expand our footprint across the country through further investments in tech, product and team," he added.
Ashfaque Chowdhury, General Partner at South Asia Tech, said, "We support innovative startups that are tackling large problems and stand to gain from the substantial growth of the economies in South Asia – the region with the fourth largest GDP in the world. Shuttle's focus on solving a major problem for middle-income consumers, with special consideration for women, truly caught our attention. We are thrilled to be supporting them in their mission."
"Shuttle has been working tirelessly to solve a major problem in Bangladesh's transportation sector, and their innovative approach is truly commendable. I am confident that this investment will strengthen Shuttle's position and allow them to expand their services in the future," said Sami Ahmed, Managing Director of Startup Bangladesh.
Sonia Bashir Kabir, Founder and Managing Director at SBK Tech Ventures, cited, "We are glad to be supporting Shuttle since the beginning through Robi's r-ventures program. I admire Shuttle's contribution to improving women's safety during commute in our country."
The startup has a total addressable market of USD 13.5 billion in Bangladesh. The team believes that the solution can be replicated in other developing countries with densely populated cities in the future.
"What impressed us most about Shuttle is its target category: mass transit. The company is solving mobility problems affecting most of Bangladesh's population and other markets. By doing so, Shuttle is helping people get places in more ways than one: People can enjoy not only faster and safer commutes but additional economic opportunities from the time they save," said Craig Bristol Dixon, Accelerating Asia's Co-founder and General Partner, after their follow-on investment.
