Two-wheeler rental startup Bounce is closing an $80 million funding round from its existing investors- Sequoia Capital, Accel Partners and Chiratae Ventures--as well as three new investors, said three people aware of the matter on the condition of anonymity.
Two US-based hedge funds, Maverick Capital Ventures, the startup investment arm of Maverick Capital, and Falcon Edge Capital, along with B Capital Group, the venture fund started by Facebook co-founder Eduardo Saverin, are the new investors participating in the latest round of funding, the people cited above said.
Mint first reported on 13 March that B Capital was in talks to invest in the round which started out at $50 million, but ended up getting oversubscribed.
“There was very significant investor interest, with discussions driven by Sequoia. The company clocks 20,000-30,000 rides a day, and is growing very fast," said one of the people cited above.
Nearly half the funding in this round is being financed by Sequoia and Accel Growth, its US-based growth investments fund, at a $200 million post-money valuation, said the person cited above.
On Monday, Bounce said that it has raised venture debt financing of about $3 million from Innoven Capital, which provides debt to startups.
“Most growth stage startups these days take some debt just before or after an equity round to avoid excessive stake dilution," said another person privy to the discussions.
Bounce 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 an app and is charged by the hour and distance. The company also provides options to rent bikes for the day or more.
Sequoia, Accel and InnoVen declined to comment while Bounce, Chiratae, Falcon Edge, B Capital, Maverick, and Innoven did not reply to queries seeking comment immediately.
Bounce last raised $12.2 million in Series A round in August last year led by Sequoia and Accel, closely after which it raised $3 million in debt from InnoVen Capital.
Two-wheeler startups have seen rising investor interest, particularly since cab-hailing unicorn Ola, India’s second most valuable startup, committed to invest $100 million in Vogo, another scooter-sharing startup, in December 2018.
Vogo, which counts Matrix Partners, Ola, Stellaris Venture Partners and Hero Group Chairman Pawan Munjal as its investors, provides scooter rentals starting at ₹3/km, and claims to have more than 1,00,000 riders and more than 10 million kilometers traveled.
Mint reported in November that at least half a dozen mobility startups, including Rapido, Ather Energy, and Bounce were in advanced talks to raise significant capital from investors. The latest funding boom in the technology-powered, ride-sharing space has been fuelled by the realization that a majority of Indians who use two-wheelers are largely turning to technology and using new-age smartphone apps to fulfil everyday transportation needs.