Bengaluru-based Metro Bikes, a bike rental startup, has raised $12.2 million in Series A funding led by Sequoia Capital India Advisors and Accel Partners. The funding also saw participation from G Raghunandan, founder of TaxiForSure and a consortium of other investors.
As a part of this transaction, Shailesh Lakhani, MD, Sequoia Capital India Advisors and Anand Daniel, Partner, Accel Partners will join the company’s board.
With this fundraise the one-way rental service provider plans to scale up its network in Bengaluru. The startup also plans to work on to better its delivery models and expand in other major cities across India by 2020.
Commenting on the investment, Shailesh Lakhani said,
While it makes sense in other markets, a service like Bounce has immense potential in India, where limitations of space and cost has always made two-wheelers more popular. The network has the potential to be a category creator – being the first to offer an extremely cost-effective, personalised, motorised transport that fills a critical need gap in the Indian market — and Sequoia India is looking forward to being a part of this journey.
The company was founded in 2014 by Vivekananda HR, Varun Agni and Anil G. While the brand name Wicked Rides is used for premium bike rental services, Metro Bikes now Bounce brand name is being used for commute bike rentals.
Currently, Metro Bikes offers around 65 to 100 bikes at 36 out of 42 metro stations across Bengaluru. It is offering rental services at INR 3-6.5 per km, the startup has planned to add 10,000 scooters in the next six months.
Recently, in this space, Chinese bike rental unicorn Ofo announced plans to launch its services in India, in collaboration with Paytm. Reportedly, the Ofo bicycle sharing service will be available on Paytm app along with its standalone mobile app.