Vogo Raises $19 Million in Series C, Readies War chest To Take on Bounce
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Ola-backed scooter mobility rental company Vogo raised $19 million in Series C1 funding round led by LGT Lightstone and existing investors to fight Bounce, Vogo’s only major competitor in the mobility space. The fund raise brings Vogo’s valuation to $76.3 million, according to Registrar of Companies filings sourced from information platform Paper.vc.
As per reports last year, the mobility start-up was looking to raise $40 million in Series C round.
The development comes after Bengaluru-based Bounce (Wickedride Adventures Services Pvt. Ltd) raised a staggering $105 million in Series D funding round, from Accel Partners, Facebook co-founder Eduardo Severin’s B Capital, and other existing investors, at a valuation of $520 million.
“The latest fundraising is critical for Vogo to grow as it tries to find space for itself across India’s cities, the world’s fastest-growing market for scooter rentals,” said Nikhil Kanekal, Analyst, Paper.vc.
“LGT Lightstone, an investment fund managed by the Princely House of Liechtenstein, led this investment round with $15.6 million. The round also saw top ups from Matrix Partners and Kalaari Capital, two of Vogo’s main backers,” Kanekal added.
Founded in 2016, Vogo Automotive Pvt. Ltd lets customers rent scooters for short distances, average being 5km, in Bengaluru and Hyderabad. The app lets customers pick up bikes at one point and drop it at another without the need for a docking station.
Anand Ayyadurai, former associate director at e-commerce platform Flipkart, founded the firm with Padmanabhan Balakrishnan, a former Zoomcar employee, and Sanchit Mittal, an Indian Institute of Technology-Mumbai graduate. Zoomcar is a Bengaluru-based car rental start-up.
In 2018, with about 200 million two-wheelers on road, the rental mobility space saw major attention from investors. The decreasing purchasing power for cars, increasing traffic congestion in urban cities, and lack of options in last-mile connectivity has created space for scooter mobility start-ups.
Apart from Vogo and Bounce, bike-taxi start-up Rapido raised funds from Pawan Munjal, Hero Moto Corp’s chief executive officer, who is also an investor in Vogo. Owned by Roppen Transportation Services Pvt. Ltd, Rapido raised at least $55 million till Series B round, according to data from Crunchbase.
Vogo has previously raised funds from Ola (Ani Technologies), India's leading cab-hailing service, and Stellaris Venture Partners, in addition to the current round. Ola's $100 million investment plan in Vogo shows its gradual entry into the scooter mobility space.