Bus travel platform Busbud races ahead with $11M investment

Busbud, a Montreal-based booking platform for intercity bus tickets, is keen on expansion following the close of an $11 million Series B funding round.

The latest investment was led by iNovia Capital and includes new investors Teralys, Claridge and Plaza Venture, and funds from Erik Blachford, former CEO of Expedia, and former eDreams ODIGEO CTO/COO Philippe Vimard. Blachford and Vimard will join Busbud’s board of directors.

“The global market for intercity bus travel is huge, with more passengers than air travel, yet it’s a market that has been widely overlooked by the travel industry,” says Blachford.

“With over 1,300 partner operators, Busbud is already essentially the biggest bus marketplace in the world, and with this critical mass and new capital, they’re poised to be the leading ticketing partner for bus operators and favorite booking experience for smart travelers.”

Existing investor Real Ventures also participated in the round.

Busbud says its website and apps allow travelers to search, compare and book bus tickets on more than 1.4 million routes in more than 75 countries worldwide, with support for 11 languages and 30 currencies. On the supplier side, the company currently works with 1,300 bus companies in 16,000 cities.

The new capital will be used to develop Busbud’s technology, expand its staff and add the service in new markets. In a statement, a company representative said they will target North America, Europe and Latin America first, followed by further expansion in Southeast Asia and South Africa. 

The trio of iNovia, Claridge and Teralys previous backed Luxury Retreats, a high-end vacation rental marketplace acquired by Airbnb in February 2017.

“Buses and luxury vacation rentals may seem worlds apart, but from an investment perspective, Busbud has a lot in common with Luxury Retreats,” says Chris Arsenault, co-founder and managing partner at iNovia.

“Passionate founders, a unique solution to a real-life travel problem, international scale, an enviable market position and fast growth - this is exactly what every VC and PE firm is looking for, and we’re elated to support Busbud as they scale."

In 2014, Busbud secured Series A funding worth $9 million.