One97 Communications, which operates digital payments and financial service platform Paytm, has invested an undisclosed amount in Rajkot based bus ticketing and cargo solutions startup, Infinity Transoft Solutions.
With the investment, Paytm will compete with MakeMyTrip and ibibo Group-owned redBus in the bus-ticketing space.
Founded in 2008 by Bhavesh Gadhethariya and Rajiv Dhamsania, Infinity Transoft provides software and technology for fleet operations, inventory management for bus and logistics companies. It also provides a travel booking platform for ticketing agents and in-bus entertainment system through its MagicBox solution. The company works with all major bus operators.
“This partnership will help us bolster our payments and ticketing technology solutions for bus operators and enable us to provide a more seamless booking and post booking experience to our growing base of online Bus ticketing customers,” said Abhishek Rajan, senior vice president at Paytm in a statement issued by the company.
The Paytm app introduced bus ticketing in 2015 and has partnered with over 2000 private bus operators as well as state road transport corporations. The app also offers train and flight ticket booking options, competing with online travel agent platforms like MakeMyTrip, Cleartrip and Yatra.
“With this investment, we will be able to rapidly develop travel-focussed tech products and expand our footprint pan-India. We aim to make bus operator profitable by using artificial intelligence, which will result in better operational efficiency,” said Rajiv Dhamsania, co-founder of Infinity Transoft Solutions in the statement.
In September, the company had stated that it was looking to invest Rs 250 crore in the travel business over the next six months. Paytm claims to sell over 6 million travel tickets every month and is eyeing 100% growth in the current financial year, 2019-20.
Paytm recently also bought last-minute booking app Nighstay to strengthen its travel arm.