Exclusive: 120 of Cityflo’s 150 Routes Are Cash Positive, Says CEO

Around 120 of Cityflo’s 150 routes are cash positive, with the premium commute operator saying its mature routes are profitable as it prepares for a sharp expansion of its network. Cityflo expects revenue to reach around ₹300-320 crore this year, up from about ₹130 crore last year, and plans to add roughly 1,000 buses annually over the next three years.

“Last year we did about ₹130 crore. Right now, we are trending north of ₹275 crore annualised,” Jerin Venad, Co-founder and CEO, Cityflo, told Autocar Professional. Asked where revenue could end this year, Venad pegged the figure at around ₹300-320 crore. Cityflo currently has around 1,300 buses operating on its platform.

EV Deployment to Accelerate

Cityflo currently has around 10 electric buses, but Venad expects deployment to pick up as the economics improve. The company estimates that around 30% of the existing buses it operates could be economically viable to run as EVs.

“As we add the next 1,000 buses, roughly 200-250 are going to be EVs,” Venad said. He expects the share of electric buses to increase further over the next three years, potentially reaching around 35-40%.

The company has an existing agreement with Eicher covering 2,000 buses over three years, but has not finalised the manufacturer for its upcoming electric bus requirement. “We’re talking to all players right now,” Venad said, adding that Cityflo expects to make an announcement once the plans are finalised.

Fleet could Grow Nearly Fivefold

Cityflo plans to grow its fleet to roughly five times its current size over the next three years. Alongside adding about 1,000 buses annually, it expects to increase its network from around 150 routes today to approximately 350-400 routes across five to six major cities.

The immediate focus remains on expanding in markets where Cityflo already operates rather than adding several new cities. The company sees significant room to add routes within its existing markets, including Delhi and Mumbai.

The expansion will continue under Cityflo’s asset-light model, with operator partners investing in and owning the buses. Cityflo determines vehicle specifications and works with its partners on route planning, driver training, maintenance, parking and service standards.

New Routes Take Around Six Months to Break Even

Around 30 of Cityflo’s routes have been added over the past six months, Venad said. A new route typically takes about two quarters to break even, while the company says its older routes have crossed that threshold.

“All routes beyond 12 months are profitable,” Venad said. Routes that fail to show sufficient demand are discontinued, with the company estimating that only around 5-10 routes have been shut so far.

Cityflo has raised around ₹125 crore to date and plans to return to the market for fresh capital as it scales. “In the next 12 months, we’ll definitely raise,” Venad said, although the company has yet to decide the size of the round.

The expansion is centred on commuters who would otherwise travel by private car. Cityflo estimates that each bus it operates can take around 20 cars off the road, positioning premium buses as an alternative to car-based daily commuting rather than a replacement for conventional public transport.