Zipgo makes its first marquee acquisition and enters Pune market with a bang. Acquires 100% stake in Pune based
bus operator, Supreme Trans Concept.
This acquisition makes Zipgo the largest technology driven, B2C, bus company in India on all metrics including cities, fleet size, rides per day, and revenue.
Supreme Trans Concepts operates 150 buses to provide intra-city bus services under the MetroZip and CityZip brands in Pune. The MetroZip and CityZip fleet primarily consists of 36 seater, deluxe, air-conditioned buses, and serve the Hinjewadi and Magarpatta areas respectively. Additionally, the company also operates 120 buses to provide Employees Transportation Services (ETS) to several IT companies in Pune including Amdocs and WNS among others. The ETS fleet consists of 27 to 42 seater deluxe Mercedes Benz and Tata city buses. Altogether, the company employs 200 people, serves more than 23,000 customers every day and has a revenue run-rate of more than Rs. 42 crores per year. Prashant Mohite, Co-founder, Supreme Trans Concepts will continue in his role as CEO of Supreme Trans Concepts and will take on additional responsibilities as Executive Vice President at zipgo.
Commenting on the transaction, Jitender Kumar, Co-founder & CEO, Zipgo, stated, “Prashant and his team has built a very impressive business, in a very capital efficient manner, over a very short period of time. Financially, the transaction is already accretive. Additional cost synergies will be realized over the next 3-6 months, by operating under the single zipgo brand, moving MetroZip to the zipgo technology platform and centralising operational functions, which will further increase the profitability of the combined business. This acquisition will also help us accelerate our goal of bringing electric buses to market.”
Pritesh Gupta, Co-founder & COO, Zipgo stated, “This is our first acquisition and a very sizable one at that. Supreme Trans Concepts is a clear market leader in Pune. Zipgo did not have a presence in Pune and hence this acquisition is operationally synergistic as well. We will leverage zipgo’s technology platform to improve customer experience and increase the ridership in Pune. The combined business is undisputedly the largest technology driven, B2C, bus company in India on all metrics including cities, fleet size, employees, rides per day, and most importantly, revenues. We already operate inter-city bus service between our key hubs including Delhi – Jaipur and Bangalore – Hyderabad. This acquisition will now also enable us to launch Mumbai-Pune bus service, which is one of the most popular routes in India.”