Bengaluru headquartered Wickedride Adventure Services, which runs scooter sharing startup Bounce, has raised $6.5 million in venture debt from existing investor InnoVen Capital.
With this infusion, Wickedride has raised a total of $12 million from the Mumbai-based venture lender over the last 18 months.
The debt infusion follows a $105 million growth equity capital round that the company raised last month. The round was led by Facebook co-founder Eduardo Saverin’s B Capital Group and venture capital firm Accel along with some existing investors. The round doubled Bounce’s valuation to an estimated $500 million.
Since its inception in 2014, the startup has secured nearly $200 million, half of which was raised this January alone.
The company’s other investors include venture capital firms Sequoia Capital India, Qualcomm Ventures, Chiratae Ventures, hedge fund Falcon Edge and impact investor Omidyar Network India.
With the latest round, the company plans to focus on electric vehicle (EV) integration and geographical expansion, a statement said.
Founded by Vivekananda H.R., Anil G and Varun Agni, Bounce offers motorcycles on rent for travel within the city. While it mostly has operations in Bengaluru and Hyderabad, the company has expanded its fleet to 23,000 motorbikes from 15,000 at the last count. It registers 130,000 rides per day, the company said.
“As we expand, we will transition to a diverse shared mobility platform to enable various mobility options as per specific needs of each customer. The fund raised will help in realising these goals while we march towards profitability,” Vivekananda H.R, CEO and co-founder of Bounce said.
Bounce aims to become profitable after the financial year 2022-23. In FY20, it expects a fivefold jump in revenues to Rs 80 crore while losses are expected to be at around Rs 160 crore. The company is also investing in its platform to offer flexible plans in the newly entered areas to gain traction.
“Bounce holds massive potential in playing a crucial role in this (shared mobility) growth story. InnoVen has been associated with Bounce since early days and impressed by the phenomenal progress they have made. Bounce is now moving to their next stage of growth and we are excited to be part of their journey,” Ankit Agarwal director at InnoVen Capital India, said.
Venture debt firm InnoVen Capital, with offices in Bengaluru, Gurugram, Singapore and China, provides loan funding to startups in various growth stages. So far, InnoVen Capital India has been involved in 250 transactions. Its startup portfolio includes food delivery platform Swiggy, ed-tech startup Byjus, online hotelier OYO, health-tech firm CureFit, apparel platform for toddlers FirstCry, logistics platforms Blackbuck and Rivigo, Ather Energy and travel startup Yatra.
Bounce’s closest competitor Vogo Automotive has so far raised around $50 million from investors such as Lightstone Global Fund and venture capital firms Kalaari Capital and Matrix Partners, Stellaris Venture Partners, Alteria Capital, cab aggregator Ola and Hero Group promoter Pawan Munjal’s family trust. As per latest data available, Vogo has operations across 500 points in cities such as Hyderabad, Bengaluru, Mysore and Manipal. Users on its platform have completed over three million trips.