RIO DE JANEIRO, BRAZIL – Buser, which operates an intercity bus transportation app in Brazil, has raised R$700 million (US$138 million) in a capital round that it will use for a R$1 billion investment plan in Brazil over the next two years, which includes entering new business areas.
The round, which the company announced Thursday, June 9, was led by LGT’s Lightrock fund and also included participation from Softbank, Monashees, Valor Capital Group, Globo Ventures and Canary, all investors in Buser in the previous series, as well as Iporanga Ventures.
“With the new investment, we will continue to grow the number of passengers, trips and partners, and prepare for the resumption of tourism that is coming,” Buser co-founder and CEO Marcelo Abritta said in the statement.
He pointed to the impact of the pandemic that continues to affect the tourism sector, although to a lesser extent compared to the same period last year, with airlines and travel companies this year resuming growth plans that were suspended in 2020 after the arrival of the coronavirus in the country.
In addition to exploring passenger services, Buser is now turning its attention to four new segments: marketplace in partnership with large buses, freight, bus finance and urban transport.
“The focus will also be on diversifying the business…such as urban passenger transport, a sector that is even more closed than interstate and intercity,” Abritta said.
Buser was founded in 2017 and has grown by exploring a “collaborative charter” model in which passengers share the final bill for the ride. The company claims to have nearly 4 million customers on its platform.
Of the R$1 billion investment planned for the next two years, the company will use R$400 million to expand “throughout the country.” Another 200 million is earmarked for financing buses with Buser’s partners.
German Flixbus could mix up the industry
It is probably no coincidence that Buser is planning this new round of investments just a few days after the announcement that the German Flixbus will invest massively in Brazil. Flixbus is a highly successful company and local operators should be aware of their strength.
With US$650 million available, German FlixBus said it will begin operations in Brazil in 2021. The German company is expected to start operating in the most popular routes in the country, such as São Paulo-Rio de Janeiro, offering prices up to 40% cheaper than traditional bus companies. Brazil start-up Buser began similar operations in 2017 but has faced stiff opposition from traditional bus companies.