Vogo, a Bengaluru-based two wheeler vehicle (scooter) rental startup, has bagged $2.9 million (approx INR 20 crore) from Stellaris Venture Partners and Matrix Partners, reported Inc42.
According to the sources, the company Vogo, has issued 11,935 Series C1 bridge compulsorily convertible preference shares (CCPS) round at a nominal value of INR 100 with a premium of INR 8,798 worth INR 10.6 Cr to Matrix Partners.
Besides, the company issued compulsorily convertible debentures (CCDs) to Stellaris Venture Partners at a nominal value of INR 100 with a premium of INR 8,798 worth INR 10.61 Cr.
Vogo was launched in 2016 by Anand Ayyadurai, Padmanabhan Balakrishnan, and Sanchit Mittal. It offers scooters on rent across five Indian cities.
The platform 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 is backed by Ola and both have a common investor Matrix Partners.
Vogo aims at looking to turn 10% of its fleet electric and aiming to acquire 100K scooters by 2019-end.
Adding on, as per the report by Quartz, most bike-taxi startups launched in recent years shut shop before turning a year old.
And while the investments in bike-taxi startups in the past year indicate that at the moment, investors don’t seem to mind the high expenses, Vogo’s financials prove that profitability is not only elusive but are a long shot for such startups at this time, the report added.
Some of the significant startups under the similar roof include Yulu, Uber, Bounce, Rapido, Ola, among more.