Bengaluru-based Bounce, which runs a dockless scooter and bicycle rental platform, has raised $3 million (around Rs 20.8 crore) in venture debt from InnoVen Capital.
Bounce’s scooter fleet includes vehicles leased from original equipment manufacturers (OEMs) and it has recently resorted to debt funding for its financing needs.
The developments come even as Bounce’s parent remains in advanced talks to raise funding from new and existing investors including Israeli-Russian billionaire investor Yuri Milner and Facebook co-founder Eduardo Saverin’s venture fund B Capital Group.
TechCircle had earlier learnt that the fundraising exercise, which initially started out as a $50 million round, could end up being oversubscribed and go up to $70-80 million.
Bounce was founded in 2014 by Vivekanand Hallekere along with Varun Agni and Anil G.
The company initially offered motorbikes and scooters on a rental basis primarily to urban commuters.
It tweaked its business model to a dockless scooter-sharing service but has continued to run its rental business. With the acquisition of bicycle-sharing unicorn Ofo’s India assets, Bounce now also offers dockless bicycle sharing.
It also offers a monthly subscription-based plan where a user can pick up a bike or scooter from a metro station, take it home and drop it back at the station the next morning, information on the company’s website states.
Besides Bounce, the company also operates WickedRide, a premium motorbike rental platform that includes brands such as Harley Davidson, Benelli, Royal Enfield, Kawasaki, Triumph, Ducati, KTM and Americana.
Sequoia Capital, Accel and the family office of Sutures India chairman Chandrasekhar Gopalan are among Bounce’s existing backers.
In November 2018, Bounce secured funding from impact investment firm Omidyar Network, which came on board as a new investor.
In February last year, the family investment office of Sutures India chairman Chandrasekhar Gopalan had invested $1.5 million (Rs 10 crore) in the venture.