Scooter-sharing start-up Bounce's valuation may hit $500 mn on new funding

Topics Bounce | start-up | Scooters

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Bounce, a bike- and scooter-sharing start-up, is raising $150 million in a Series-D funding round from investors such as B Capital and Accel Partners, say sources. The investment more than doubles the valuation of the Bengaluru-based firm to over $500 million from its previous funding round when the company was valued at over $220 million in June this year. It had raised $72 million in a Series-C financing round led by B Capital Group and Falcon Edge Capital.

“The company is on the verge of raising $150 million and the paperwork is being done right now,” said a person with direct knowledge of the deal. The company declined to comment on the development.

In January this year, Bounce’s valuation was between $45 million and $50 million when it raised $8 million in a funding round led by Chiratae Ventures.

This new round of funding will help accelerate Bounce in its expansion nationally across various cities. It is also actively working with the local and the national government to provide innovative solutions for seamless first and last-mile connectivity. The company plans to expand its offering to 10 metro cities in the coming year, after recently launching its dockless model in Hyderabad.

In October this year, Bounce said it has reached a significant milestone of 100,000 rides per day in Bengaluru. Within 13 months of the company launching its dockless offering, Bounce has completed 10 million transactions in the city and covered more than 70 million kilometres with 9,500 scooters. The company said it has seen exponential growth since its launch and is today one of the fastest-growing brands, scaling on par with global players, including US-based scooter-rental companies Lime and Bird.

Founded in 2014 by Vivekananda H R, Anil G, and Varun Agni, the start-up’s app allows the users to pick up a scooter and drop it at any legitimate parking spot. The firm said accessibility and affordability have made it one of the "preferred" modes of transport, both for first- and last-mile connectivity, as well as a regular commute. The company had plans to introduce over 50,000 vehicles during the current year.

In India, only 18 per cent of the population has access to owned vehicles and 82 per cent depend on shared and public transport for their daily commute. However, due to poor urban planning and lack of infrastructure, transport is broken in most parts of the country. Bounce said it aims to provide convenient, affordable and time-efficient commute options to citizens by encouraging them to opt for shared mobility for first-last mile connectivity and public transport for long-distance travel. The company said its scooters remain one of the most affordable modes of commute, offering users rides at Rs 5 per km. 

In June this year, Bounce’s rival Vogo raised Rs 25 crore as debt from Alteria Capital. Last December, the firm formed a strategic partnership with Ola, under which the ride-hailing giant will boost Vogo’s supply by investing in 1,00,000 scooters on the Vogo platform, worth $100 million. Its offerings will be available for Ola’s customer base of over 150 million, directly from the Ola app.

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