Bangalore-based startup Bounce has raised roughly $150 million in a Series D funding round led by existing investors Eduardo Saverin’s B Capital and Accel Partners India, as reported on Wednesday (Nov. 27), citing two sources.
The rental service runs more than 17,000 electric and gasoline scooters in 36 Indian cities. Valuation after this funding round is estimated at “well over $500 million,” the source said. June’s Series C financing round valued the startup at slightly more than $200 million.
Formerly called Metro Bikes, Bounce rents out scooters for as little as Rs 1 (0.1 cents) per km and Rs 1.5 per hour. The company said it has 2.1 million customers.
The world’s biggest demand for two-wheelers is in India, where the industry estimates there are over 200 million people with a license to ride. The country sells roughly 20 million new motorcycles and scooters annually.
People in India gravitate toward these rentals because of the low price point and the efficiency when navigating crowded roadways.
Bounce Co-founder and CEO Vivekananda Hallekere told The New York Times earlier this year that the “traditional” model of ride-hailing companies like Uber and Ola is reaching its limits.
“You can’t make it affordable with a driver,” Hallekere said. “And if users know how to use a scooter, why do you need a driver?”
Bounce rival Vogo is funded by Ola. Another competitor, Yulu, which partners with Uber, closed an $8 million Series A funding round this week.
Earlier this week, Ola announced plans to move into London after entering different parts of the U.K. in the past year. So far, the company has raised $3.5 billion, and aims to get about 50,000 drivers in London.
The ride-hailing company secured a license from Transport for London (TfL) earlier in the year, and said it was equipped to serve seven million people throughout 27 British boroughs. Uber’s license was revoked in London this week.