Shuttle, a mass-transit startup based in Bangladesh, has raised US$750,000 in a seed fundraising initiative, led by Accelerating Asia.
Robi Axiata Limited (r-ventures), Impact Collective (The Ventures, South Korea) and Bangladesh Angels Network (BAN), are some of the investors who participated in the round in addition to angel investors from home and abroad, said a press release.
Shuttle is also eligible for receiving Impact Ready Matching Fund of up to US$100,000 from Biniyog Briddhi -- a multi-year programme dedicated to supporting a thriving ecosystem where impact enterprises of Bangladesh can grow and scale their impact, it added.
Biniyog Briddhi is a public-private development partnership (PPDP) between the Embassy of Switzerland in Bangladesh, Roots of Impact and LightCastle Partners.
Previously, Shuttle raised a pre-seed round from Robi Axiata Limited and in total, it has raised close to US$ 1 million so far.
Shuttle provides its service in air-conditioned minivans, accommodating 10-11 people who can safely commute together by paying less than one-fourth of ride-sharing cars.
The company started its journey back in 2018 with a women-only service to solve a pressing issue in Bangladesh- the lack of safe transportation for women.
The service proved to be remarkable, garnering impressive responses from female users all across Dhaka.
Shuttle currently has more than 20,000 women registered in their platform for the 'Shuttle for Women' service and has completed more than 1 million successful rides. It has recently extended its services further and incorporated 'Shuttle for Business' in 2020.
When asked what makes Shuttle different, Co-founder & CEO Reyasat Chowdhury said it is the 'separate solution for each' approach that makes them unique.
"When we started, we figured out that different segments of people in the society, women, men, businesspersons, school and university students, etc., have different needs and different priorities, and one solution for all will not solve the problems," he said.
"We first met Shuttle back at the end of 2018, when they were just starting. Since then, Shuttle has grown its core product and diversified its offerings significantly. During the Accelerating Asia accelerator program, we saw the team's ability to execute ideas, launch new products and resilience within the team when they successfully launched Shuttle for Business and signed clients including top MNCs in tough market conditions," said Amra Naidoo, Co-founder and General Partner from international accelerator VC Accelerating Asia, regarding their experience with Shuttle.
"We are excited to lead the investment round into Shuttle and have them as part of the Accelerating Asia portfolio."
Shihab Ahmad, Chief Commercial Officer of Robi and sponsor of r-ventures, praised Team Shuttle for its resilience. He also lauded the team's continued progress in delivering services.
Jimin Ryu, who led the investment deal for Impact Collective, said, "Shuttle helps to solve social problems faced by developing countries with insufficient infrastructure."
The startup has a total addressable market value of US$ 7.5 billion in Bangladesh. The team believes that the solution can be replicated in other developing countries and densely populated cities as well.
CEO of Bangladesh Angels Network (BAN), Nirjhor Rahman said, "Both intra-city and intercity mass commute in Bangladesh is dangerous, unreliable and unsafe, especially for women. Reyasat and his team are building a 21st-century bus service for Bangladesh and beyond, and we are excited to be part of the journey."
