Bounce, a Bengaluru-based startup, has increased its funding to $ 150 million for the production of Series D scooter. The company is presently led by investors Eduardo Saverin’s B Capital and Accel Partners India.
This 5-year old company provides rent scooters and has now more than 17,000 electric and gasoline scooters in 36 Indian cities.
Advantages of Cheapest and Effective Service
The CEO of the company, Vivekananda Hallekere, describes that the company offers scooter rental service, which allows the users to pick up the vehicle provided from anywhere and ride to their destination and drop it off at any location.
Hallekere explains that people like the service, as it provides low rental charges and efficient prices for riding in crowded streets.
He further explains the need for such services in India because the country has more than 200 million people who own riding licenses and the sale of motorcycles and scooters is around 20 million annually.
The company is offering to cater to the needs of the people besides its existing 2.1 million customers. Bounce rents out its scooter with the cheapest rate of around Rupee 1 (0.1 cents) per kilometer.
Referring to the services provided by Uber and Ola as expensive and traditional, the CEO of Bounce commented, using a driver is now expensive and if people know how to use a scooter, they will use them instead of hiring a driver.
Expansion within India and Outside
The company plans to expand its operations in many other cities of India and outside the country. The company is likely to launch its services in Australia.
Currently, the company has 9500 scooters in Bengaluru alone and has completed 10 million transactions covering services of more than 70 million kilometers within the city.
In October 2019, the company’s bikes were used for 100,000 rides a day in Bengaluru alone. It plans to expand its services to 10 metro cities in 2020 and launch its services in Hyderabad.
Company’s Worth Increases
After investing in Series D scooters, the company will be valued at $ 500 million, which is almost double its value when Series C was launched in June 2019.
Bounce’s value was $200 million while $72 million was raised for funding its Series C from several investors, including B Capital Group and New York-based hedge fund Falcon Edge Capital in June 2019. In November 2018, Bounce acquired the Indian assets of the Chinese bike rental company, Ofo.
The launch of series D will help the company to gain an edge over its competitors such as Vogo, funded by Ola and Yulu by Uber. Recently, Bajaj Auto Ltd., an India-based motorcycle manufacture company, invested $ 8 million in Yulu, which is a major provider of scooter rental services in Bengaluru.
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