India: Two-wheeler rental startup Vogo raises $19m led by Lightstone Fund

Bengaluru-based two-wheeler rental platform Vogo Automotive Pvt Ltd has raised $19.1 million (Rs 137 crore) in its ongoing Series C funding round led by Lightstone Fund S.A.

Existing investors Matrix Partners and Kalaari Capital have also participated in the financing.

According to the company’s regulatory filings sourced by Paper.vc, Lightstone Fund has invested a total of about $15.7 million (Rs 113 crore) for 79,462 compulsorily convertible preference shares (CCPS) and 10 equity shares in Vogo. Meanwhile, Matrix Partners and Kalaari Capital have infused Rs 10.64 crore and Rs 14.2 crore, respectively.

The latest funding round has valued Vogo at $76.3 million.

“In addition to the current round, Vogo has previously raised money from Ola (Ani Technologies) and Stellaris Venture Partners. It’s main rival Bounce has a valuation of $520 million, with the backing of Accel Partners, Sequoia Capital and B Capital. 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, an analyst with Paper.vc.

Founded by Anand Ayyadurai, Sanchit Mittal and Padmanabhan Balakrishnan in 2017, Vogo provides scooters and motorcycles on rent through its mobile application wherein users can pick up and drop the vehicles at dedicated places within a city. The service is currently available in Hyderabad and Bengaluru.

Vogo had raised Rs 21.2 crore from Stellaris Venture Partners and Matrix Partners in the Series C round in November last year. Last June, it also raised an undisclosed amount in funding from former Myntra CEO Ananth Narayanan, serial entrepreneurs K Ganesh and Srini Anumolu, as well as Manish Vij, the founder of SVG Media.

The startup is also backed by ride-hailing firm Ola, one of India’s most valuable startups.

Vogo reported a 12 times rise in losses to Rs39.2 crore during the financial year ended March 2019 owing to mounting expenses. Its operational revenue stood at Rs5.7 crore in FY19 as against Rs2 crore a year ago.

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