Routematic, a transport-as-a-service provider based in Bengaluru, has raised 338.5 crore rupees (US$40 million) in a series C funding round.

The funding was co-led by Fullerton Carbon Action Fund and Shift4Good, as said by co-founder and CEO Sriram Kannan.

The funds will be used to scale operations and expand Routematic’s presence in Bengaluru, Pune, Delhi NCR, Chennai, and Hyderabad.

The company aims to expand its fleet to over 10,000 vehicles by March 2026 and establish relay operation centers in multiple cities to boost efficiency.

Founded in 2012 by Kannan and Kavitha Ramachandragowda, Routematic provides employee transportation solutions for corporations in India.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Corporate mobility startups evolving from software providers to full-stack service operators

Routematic’s journey reflects a key industry trend where successful mobility companies transition from pure software platforms to comprehensive service providers.

Starting as a transport automation solution for enterprises in 2013, Routematic expanded to fleet aggregation by 2018, enabling them to directly manage transportation for companies1.

This vertical integration strategy has been pursued by market leader MoveInSync as well, which offers both a SaaS model (MoveInSync Corporate) and a comprehensive transport service (MoveInSync Total)2.

The shift toward end-to-end services shows how corporate transportation companies have discovered that controlling the entire value chain, from software to vehicles, creates more reliable service quality and better economics.

This evolution helps explain why Routematic’s current funding is focused on operational assets, such as expanding their fleet to 10,000 vehicles and establishing relay operation centers, rather than just enhancing their technology platform.

2️⃣ Employee transportation market showing robust growth amid return-to-office mandates

The corporate transportation sector is experiencing significant expansion as companies bring employees back to physical workplaces, with market projections showing strong growth trajectories.

While estimates vary, multiple research sources indicate substantial growth: the employee transportation market is projected to grow from approximately $35-40 billion currently to between $52-150 billion by 2030-2035, representing annual growth rates between 5.34% and 8.8%345.