Bounce bags $20M in series E funding round
The $20 million Series E investment round for e-mobility company Bounce is expected to be closed with participation from Sequoia CapitalIndia, among other investors. According to a source familiar with the situation, the business has also set its sights on an initial public offering (IPO) over the next couple of years. RoC filing with the Ministry of Corporate Affairs, Bounce closed on $5.3 million of the $20 million in March of this year.
Bounce was in advanced discussions to raise $20 million to $30 million, a far less sum than it had hoped to collect in the first few months of 2022. The startup, which began in 2014 as a two-wheeler rental service, has so far raised close to $200 million. Just before the epidemic began, the business completed its Series D financing, which closed at $105 million.
The recent switch by Bounce to e-scooters may have needed a "adjustment of perception" on the part of its current investors, which is likely why the $20 million appears to be a "down round," according to an investor familiar with the company's operations.
"EV is a profitable sector, and the founding team of Bounce has demonstrated their ability to create outcomes. Given the favourable perception of EVs in India, it's also a wise turn. "A $20 million financing would have been a tremendous opening round if this were a new company. Bounce has a wealth of data that it can use to grow a strong EV business, the investor continued.
In 2022, the Bengaluru-based company abandoned its ridesharing venture and switched its focus to producing cutting-edge electric two-wheelers. By the conclusion of the current fiscal year, it hopes to sell 10,000 EVs per month. The startup has made notable progress in cutting its losses. It posted a consolidated loss of Rs 243.3 crore for the FY ending March 31, 2022, down from Rs 305.6 crore the year before. Due mostly to widespread layoffs at the company, its expenses decreased 23% throughout the year. In order to cut costs, Bounce reportedly let go about 80% of its entire personnel in 2017.
Bounce was in advanced discussions to raise $20 million to $30 million, a far less sum than it had hoped to collect in the first few months of 2022. The startup, which began in 2014 as a two-wheeler rental service, has so far raised close to $200 million. Just before the epidemic began, the business completed its Series D financing, which closed at $105 million.
The recent switch by Bounce to e-scooters may have needed a "adjustment of perception" on the part of its current investors, which is likely why the $20 million appears to be a "down round," according to an investor familiar with the company's operations.
"EV is a profitable sector, and the founding team of Bounce has demonstrated their ability to create outcomes. Given the favourable perception of EVs in India, it's also a wise turn. "A $20 million financing would have been a tremendous opening round if this were a new company. Bounce has a wealth of data that it can use to grow a strong EV business, the investor continued.
In 2022, the Bengaluru-based company abandoned its ridesharing venture and switched its focus to producing cutting-edge electric two-wheelers. By the conclusion of the current fiscal year, it hopes to sell 10,000 EVs per month. The startup has made notable progress in cutting its losses. It posted a consolidated loss of Rs 243.3 crore for the FY ending March 31, 2022, down from Rs 305.6 crore the year before. Due mostly to widespread layoffs at the company, its expenses decreased 23% throughout the year. In order to cut costs, Bounce reportedly let go about 80% of its entire personnel in 2017.
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