A small UK startup combining a school bus service with a software platform, Kura, has been acquired by Zeelo, a ‘smart buses’ startup. Zeelo, which raised a $14 million war chest for expansion last year, has acquired Kura, founded in the UK in 2010. Kura, having previously raised £3.8 million in a Private Equity round from Souter Investments, provided a safeguarding tech platform for schools and colleges, bus transportation, and a similar service for employee shuttles and charter transport services in the UK.
Key Takeaway
Zeelo’s acquisition of Kura signals further consolidation in the smart-bus industry, paving the way for potential expansion and growth in the UK and US markets.
Expansion and Growth
The acquisition means the combined entity will have 220 customers, 450 operator partners, and 40,000 daily riders using the platform. Zeelo, with a $14 Series A extension last year, has raised a total of $33.6 million since its launch in 2016. The company’s ‘smart bus’ routing algorithm optimizes bus programs, saving clients up to 43% on their billing and increasing ridership by 50%.
Future Plans
Zeelo plans to expand its sales and operations in the U.S. and enhance its technology platform. The company narrowly avoided a failed acquisition by SPAC-backed Swvl and a wave of market volatility in tech stocks. Sam Ryan, co-founder & CEO of Zeelo, declined to comment on the price of the acquisition but hinted at “a pipeline of M&A opportunities across” the UK and US markets.
