Bounce in talks to raise fresh funds
1 min read . Updated: 13 Mar 2019, 10:59 PM IST- Facebook co-founder Eduardo Saverin is among likely investors
- Bounce last raised equity funding of $12.2 million from Sequoia India and Accel in August 2018
Mumbai/Bengaluru: Two-wheeler rental startup Bounce is in talks with Facebook co-founder Eduardo Saverin’s venture fund, B Capital Group, to raise around $50 million, according to three people familiar with the matter.
The company is also talking to several other big investors from across the globe including the US, Taiwan and Japan, and the round may end up getting over-subscribed up to $70 million, two of the three people cited above said on the condition of anonymity.
“Bounce is the kind of company which investors believe has the metrics to potentially become a billion-dollar company and more," said one of the people cited above, requesting anonymity. “The kind of metrics with respect to bike utilization that the company has shown are very similar to Oyo and Swiggy when the companies were at series A level."
The company was founded as Wicked Rides in 2014 by Vivekananda H.R., Varun Agni and Anil G. While they offered premium motorcycle rentals under the Wicked Rides banner, they later added commute bikes under the Metro Bikes label, rebranded as Bounce in August 2018.
The commute bikes can be picked up from the nearest location through the app and is charged by the hour and distance. The company also provides options to rent bikes for the day or more.
According to the tariff mentioned on the company website, a minimum fee of ₹15 per hour is charged to rent the basic two-wheeler.
“During the upcoming funding round, the valuation of Bounce is expected to shoot up," said the second person cited above. “They are looking at a 25-30% dilution for a $50 million fundraise."
Sequoia declined to comment, while Bounce and B Capital did not respond to queries sent by Mint as of press time.
Investor interest in the mobility sector has surged over the past several months. Mint had reported in November that at least half a dozen mobility start-ups including Bounce, Ather Energy, Vogo and Rapido are in the process of raising money.
In December, India’s second most valuable startup, Ola agreed to invest $100 million in scooter-sharing start-up Vogo as part of a new strategic alliance to help the company add at least 100,000 new scooters.
Flipkart co-founder Sachin Bansal has been in talks to invest in Ather.