DILA Capital announced their investment in Reserbus, the leading online bus-ticketing platform in Mexico
September 2nd, Mexico City.- The two founders, Andres Sucre and Sebastian Gomez, decided that after completing their MBA in MIT they would venture into entrepreneurship. It was while traveling through Mexico that they found the unquestionable problem and yet massive opportunity in Mexico´s bus industry, a US$6.5B market with a tremendous challenge in terms of logistics and bookings. Having interned in Mexico with Rocket Internet and Linio, the founders recognized the potential and their ability to tackle the problem.
The process of booking bus tickets in Mexico is inefficient, it is difficult to obtain trip information, seat availability is uncertain, lines at bus terminals are long and there is poor customer service. There are few online options, mostly dominated by the websites of individual bus operators.
Reserbus’ mission is to revolutionize the most important means of travel in Mexico. According to the founders, the untapped market represents more than 2.7 billion passengers per year, of which 550 million belong to the premium class and therefore Reserbus’ target market. In comparison, in 2013, 61 million passengers traveled through domestic airlines in Mexico, representing only 11% of Reserbus’ potential market.
It is clear that within the sector, technology is lacking and creating a solution is one of the most interesting areas of opportunity. Reserbus joined forces with Adrian Cuadros (CTO), a Bolivian native with a B.S. Computer Science degree of Tecnológico de Monterrey. “Every bus company has a different reservation system and it is highly complicated to integrate their unique and distinctive system with an online platform such as Reserbus”, explained Adrian. However, in the first 12 months of operation, Reserbus has been able to integrate more than 9,000 buses on their platform.
Given Mexico’s colossal market, it is worthy of Reserbus’ full attention before international expansion. Furthermore, there are plentiful options of additional revenues sources that should be sufficient for the team to focus on the next months such as travel insurance, and other services fees as well as B2B partnerships with hotels and other travel categories.
About DILA Capital
DILA Capital is a Mexico City-based VC Firm that fosters the growth of Mexican entrepreneurs and start-up companies. By offering equity investments, debt financing and guidance, DILA strives to add value to its invested companies and entrepreneurs. In addition to their vast entrepreneur network, knowledge of the Mexican market and experience of their partners.