Indian bike rental startup Bounce raises $150m led by B Capital, Accel

Visual from Bounce website

Bengaluru-based bike rental startup Bounce has raised $150 million in its Series D funding led by existing investors B Capital, a global technology fund led by Facebook co-founder Eduardo Saverin, and Accel Partners India.

The latest round has spiked the company’s post-money valuation to $500 million, almost double what it attained in Series C round in June.

The development was first reported by TechCrunch citing sources. DealStreetAsia independently confirmed the funding with a source close to the development.

“Most funding has come internally from existing investors. A couple of new investors, too, have joined the round. The company is in the middle of doing paperwork pertaining to the investment,” said the source.

Founded in 2014 by Vivekananda HR, Anil G, and Varun Agni, Bounce offers a dockless scooter sharing service allowing users to pick up the scooter from anywhere, ride to their destination and drop it off at any location.

According to an earlier report, Bounce will largely use the funds to expand its existing operations within and outside the country. It was also reportedly planning to launch operations in Australia.

Within India, the company enjoys a strong presence in Bengaluru, where it has completed 10 million transactions and covered more than 70 million kilometers with their 9500 scooters. Last month, it claimed to have reached a milestone of 100,000 rides per day in the city.

The company also plans to expand its offering to 10 metro cities in the coming year, after recently launching their dockless model in Hyderabad.

Bounce was valued at over $200 million when it raised $72 million in its Series C funding round led by B Capital Group and New York-based hedge fund Falcon Edge Capital in June. Other investors Accel Partners India, Accel Partners USA, Chiratae Ventures, Maverick Ventures, Omidyar Network India, Sequoia Capital India and Qualcomm Ventures also participated in the round.

In November last year, Bounce had also acquired the India assets of Chinese dockless bike rental company Ofo.

Bounce competes with the likes of Yulu, Shunwei Capital-backed Rapido, Ola-backed Vogo, B Capital-backed Bounce, and Drivezy among others.

Earlier this week, Indian motorcycle maker Bajaj Auto Ltd (BAL) said it is investing $8 million in Bengaluru-based bicycle and electric scooter rental startup Yulu. Yulu plans to increase its fleet size to 100,000 electric two-wheelers by December 2020 from 15,000 vehicles at present. The startup currently offers services in Bengaluru, New Delhi, Pune, Greater Mumbai, and Bhubaneswar.

Last month, Rapido secured $55 million in a Series B round of financing from a group of investors including Shunwei Capital, a Chinese venture capital firm led by smartphone maker Xiaomi’s founder Lei Jun.

Meanwhile, hedge fund Steadview Capital is reportedly in talks to lead a $50 million funding round in two-wheeler rental startup Vogo. The startup has raised over $120 million to date.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.