Scooter sharing platform Bounce, previously Metro Bikes, has raised debt funding of $3 million led by the debt financing firm InnoVen Capital to boost its expansion plans and establish a pan-India presence. The team also aims to use the funding to invest in a stronger delivery model through innovations in technology.
Last month, the company had raised $12.2 million Series A funding led by Sequoia Capital and Accel Partners. The company then had rebranded as Bounce, from Metro Bikes.
The company now aims to scale Bounce’s network across Bengaluru and develop a pan-India presence by 2020.
Founded by Vivekananda, Varun Agni and Anil G, the startup offers dockless scooter sharing service, which allows users to pick up a scooter from anywhere, ride to their destination, and drop it off at any location.
In a press statement, Ankit Agarwal, Director at InnoVen Capital said,
“Bounce is creating a very interesting and useful category for last-mile commute in Indian cities, characterised by dense population, infrastructural issues and lack of convenient and affordable commuting options. The shared mobility segment has tremendous potential and Bounce’s innovative offering in the two-wheeler segment is well poised to fill a critical void for Indian commuters.”
The bike-taxi segment is fast growing in India. There also is Rapido, which currently claims to have over 4,000 bikes in Bengaluru, and over 1,000 in Gurgaon.
A study by AlphaBeta Analytics suggests that globally Uber users save 38 percent time with uberMOTO and nine to 18 percent with uberX compared to modes of transportation available earlier.
For Bounce, the average cost per kilometre is at Rs 6, and the team claims to have seen over 200,000 downloads on its Android and iOS platform. During the last fundraise, Vivekananda had said that they are looking at a market opportunity of $ 4.5 billion.
The firm has also gone beyond scooters, offering other forms of transport, including bicycles, electric pedelecs, and kick scooters across the city. And
“We believe that InnoVen’s global presence and excellent network will help us to expand our footprint and accelerate our growth,” said Vivekananda.