Bounce Nears Completion of $20 Million Funding Round; Plans IPO on the Horizon
- ByStartupStory | May 17, 2023
Bounce, an e-mobility startup, is on the verge of concluding its Series E funding round at a substantial $20 million. Noteworthy participants include Sequoia Capital India, an existing investor, alongside other contributors. Additionally, the company has expressed its intention to pursue an initial public offering (IPO) within the next few years.
According to a filing with the Ministry of Corporate Affairs, Bounce successfully secured $5.3 million out of the $20 million funding round in March of this year. Earlier in November, YourStory reported exclusively that Bounce was engaged in advanced discussions to raise between $20 million and $30 million, which is considerably lower than the initial target set in early 2022.
Since its inception as a two-wheeler booking company in 2014, the startup has successfully accumulated close to $200 million in funding. Prior to the onset of the pandemic, the company concluded its Series D funding round at an impressive $105 million.
According to an informed investor interviewed, the current funding landscape is challenging for all players. However, the recent transition of Bounce towards e-scooters may have necessitated a shift in perspective for its existing investors, possibly explaining the relatively lower amount of $20 million, which is perceived as a “down round”.
“EV is a lucrative market and Bounce’s founding team has shown they can produce results. It’s also an intelligent pivot given the positive sentiment for EVs in India.” “If this was a new company, a $20 million fundraise would have been a great initial round. Bounce has a lot of data it can capitalise on and build a solid EV business,” the investor added.
After discontinuing its ridesharing operations, the Bengaluru-headquartered firm redirected its focus towards the production of groundbreaking electric two-wheelers in 2022. The company has set an ambitious target of selling 10,000 electric vehicles (EVs) each month by the conclusion of the current fiscal year.
The startup has made notable progress in minimizing its financial losses. During the financial year ending on March 31, 2022, it recorded a consolidated loss of Rs 243.3 crore, a decrease compared to Rs 305.6 crore in the previous year. The company’s expenses declined by 23% in the same period, primarily attributed to substantial workforce reductions. According to media sources, Bounce downsized nearly 80% of its total workforce last year as part of cost-cutting measures.
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