Bounce's FY22 loss narrows as job cuts pay off
Bounce was founded in 2014 by Vivekananda Hallekere, Varun Agni, and Anil G as an app-based platform for booking two-wheeler rentals. The company made a pivot to manufacturing electric vehicles with the launch of its electric scooter earlier this year.
Two-wheeler e-mobility startup reported a narrower net loss for financial year 2021-22 as expenses—particularly employee benefits—declined.
Consolidated loss for the period ended March 31, 2022, was Rs 243.3 crore, compared with a loss of Rs 305.6 crore in the same year-earlier period.
Total expenses in the financial year fell 23% to Rs 276.8, mainly due to a 67% decline in employee benefit expenses. Bounce has been axing jobs since 2020, when COVID-19 hit, and has continued its headcount reduction in 2023.
In its latest round of layoffs in January 2023, the company laid off 5% of its total staff—40-50 employees—across customer support, finance and other teams.
"Bounce recently underwent an internal restructuring practice in a phased manner, which has impacted a small number of employees, mostly in the customer support teams," the company had told YourStory in a conversation.
In February 2021, two years ago, it had laid off 200 people, citing low demand for shared mobility.
In total, the company has cut its workforce by 80-90% over the last couple of years.
Bounce's total consolidated revenue fell 37% to Rs 33.46 crore in FY2022 as interest income nearly halved.
YourStory had exclusively reported that Bounce was in advanced talks to raise $20 million to $30 million at a flat or a lower valuation (about $500 million), mostly due to its multiple pivots and tough macroeconomic conditions.
The startup has raised close to $200 million to date. It raised $105 million in a Series D round in January 2020, just a few months before the pandemic hit.