Bicycle brand Frog Cycles, owned by Mumbai-based AlphaVector, has raised an undisclosed sum in a funding round led by early-to-growth stage investor Avaana Capital.
Titan Capital, an investment arm of Snapdeal founders Kunal Bahl and Rohit Bansal, participated in the round, a company statement said.
Frog Cycles previously raised capital from Bengaluru-based venture capital firm Fireside Ventures in September 2018.
The company will use the latest capital infusion to expand its product offerings, launch electric bicycles and invest in a manufacturing facility with a capacity of one million bicycles a year under the Make in India programme, the statement said.
AlphaVector plans to raise an additional $8-10 million soon to support Frog Cycles’ growth plans and become the most preferred bicycle brand for its target segment, the statement added.
“We look forward to partner with Avaana Capital and Titan Capital as we continue to scale our business in the country. India sells 20 million bicycles every year and yet, the bicycle category has remained stagnant with minimal innovation and trifling brand connect with consumers. AlphaVector has focused on launching innovative yet affordable products that speak to and resonate with India’s young demographic and give them access to an aspirational brand,” Sachin Chopra, CEO and founder, AlphaVector, said.
Frog Cycles was founded in 2015 by former private equity executive Chopra who earlier worked with firms such as Warbug Pincus, General Atlantic and Everstone Capital. The company offers bicycles for men, women and children, and has a retail presence in over 250 cities.
“(The) new India wants high-quality products that feel comfortable and aspirational. The largest market demand would be around the blending of aspiration and affordability. As the fastest-growing aspirational brand with a singular focus on creating affordable, comfortable and stylish products for this target segment, we expect AlphaVector’s Frog Cycles to emerge as a major player,” Anjali Bansal, founder of Mumbai-based Avaana Capital, said.
Avaana Capital was founded in 2018 by Bansal after she quit TPG Growth, the mid-market investment platform of US-based private equity firm TPG. The company has also backed online insurance aggregator Coverfox and digital lending platform LoanTap.