Bengaluru-based bike rental startup Bounce has raised $150 million in its Series D funding led by existing investors B Capital, a global technology fund led by Facebook co-founder Eduardo Saverin, and Accel Partners India.
The latest round has spiked the company’s post-money valuation to $500 million, almost double what it attained in Series C round in June.
The development was first reported by TechCrunch citing sources. DealStreetAsia independently confirmed the funding with a source close to the development.
“Most funding has come internally from existing investors. A couple of new investors, too, have joined the round. The company is in the middle of doing paperwork pertaining to the investment,” said the source.
Founded in 2014 by Vivekananda HR, Anil G, and Varun Agni, Bounce offers a dockless scooter sharing service allowing users to pick up the scooter from anywhere, ride to their destination and drop it off at any location.
According to an earlier report, Bounce will largely use the funds to expand its existing operations within and outside the country. It was also reportedly planning to launch operations in Australia.
Within India, the company enjoys a strong presence in Bengaluru, where it has completed 10 million transactions and covered more than 70 million kilometers with their 9500 scooters. Last month, it claimed to have reached a milestone of 100,000 rides per day in the city.
The company also plans to expand its offering to 10 metro cities in the coming year, after recently launching their dockless model in Hyderabad.
Bounce was valued at over $200 million when it raised $72 million in its Series C funding round led by B Capital Group and New York-based hedge fund Falcon Edge Capital in June. Other investors Accel Partners India, Accel Partners USA, Chiratae Ventures, Maverick Ventures, Omidyar Network India, Sequoia Capital India and Qualcomm Ventures also participated in the round.
In November last year, Bounce had also acquired the India assets of Chinese dockless bike rental company Ofo.
Bounce competes with the likes of Yulu, Shunwei Capital-backed Rapido, Ola-backed Vogo, B Capital-backed Bounce, and Drivezy among others.
Earlier this week, Indian motorcycle maker Bajaj Auto Ltd (BAL) said it is investing $8 million in Bengaluru-based bicycle and electric scooter rental startup Yulu. Yulu plans to increase its fleet size to 100,000 electric two-wheelers by December 2020 from 15,000 vehicles at present. The startup currently offers services in Bengaluru, New Delhi, Pune, Greater Mumbai, and Bhubaneswar.
Last month, Rapido secured $55 million in a Series B round of financing from a group of investors including Shunwei Capital, a Chinese venture capital firm led by smartphone maker Xiaomi’s founder Lei Jun.
Meanwhile, hedge fund Steadview Capital is reportedly in talks to lead a $50 million funding round in two-wheeler rental startup Vogo. The startup has raised over $120 million to date.