RedBus sets sights on doubling international market share

RedBus, the leading global online bus ticketing platform, is gearing up for substantial expansion as it sets its sights on doubling its international market share from 10% to 20% in the mid-term. Rajesh Magow, co-founder and group CEO, emphasized this goal, stating, “Our aim is to double that contribution from 10% to 20% in the mid-term as well.” He added, “We’re trying to go to various international destinations.” He continued, “In this quarter, we launched in Vietnam and Cambodia as well.” Magow highlighted the company’s recent ventures into new international markets, leveraging their successful playbook from India.

Magow further elaborated on the company’s growth strategy, noting the healthy performance of international bus markets in Q4 FY24, particularly driven by Ramadan bookings in Southeast Asia and holiday bookings in Latin America. He said, “International bus markets witness healthy growth in Q4 FY24 on the back of Ramadan bookings in Southeast Asian markets and Good Friday Easter holiday bookings in Latin America.” He added, “We launched RedBus in two new international markets this quarter.” He continued, “We went live in Vietnam on all channels with both English and Vietnamese booking funnels. We also launched our services in Cambodia with inventory from 30 plus bus operators flying on route with -- within Cambodia, as well as to cities in Thailand and Vietnam.”

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In the bus ticketing segment, RedBus reported robust figures, with gross bookings reaching $260.6 million for the quarter, marking a 23.3% year-on-year growth in constant currency terms. The adjusted margin stood at $26.1 million, reflecting a strong performance. Notably, the company witnessed a significant year-on-year growth of over 36.6% in constant currency terms.

Commenting on the expansion, Mohit Kabra, CFO of the company, highlighted the strategic move into Cambodia and Vietnam, aligning with the overall vision to penetrate multiple markets in Southeast Asia. He said, “In ballpark about 10%, and the expansion or kind of the foray into Cambodia and Vietnam is pretty much in line with our overall strategy.” He added, “So we do believe overall Southeast Asia offers good opportunity for expanding the RedBus brand.”

Looking ahead, RedBus is poised for further growth in 2025, buoyed by a steady 25% increase in revenue over the past year. Prakash Sangam, CEO of RedBus, attributed this growth to positive industry trends, including bus occupancy rates exceeding 77% and a notable surge in online bookings.

The company aims for a significant 15% increase in available bus listings in the coming year, primarily through partnerships with private operators. This objective builds upon the successful 10% increase achieved in 2023, reflecting RedBus’s commitment to expanding its service offerings and meeting the growing demand for online bus travel.