Scooter rental startup Vogo has raised an undisclosed amount in funding from a number of prominent investors including cab-hailing company Ola, along with Hero MotoCorp chairman Pawan Munjal’s family office, Stellaris Venture Partners, Matrix Partners India.
Merisis Advisors acted as financial advisors for Vogo’s investment deal.
The funds raised will be used to expand its penetration in the market, along with boosting the marketing and branding team.
The recent funding comes soon after another scooter rental startup Metro Bikes (Bounce) raised ₹84 crores in series A funding led by Sequoia India and Accel Partners.
Vogo was founded by Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal in 2016 with its headquarter in Bengaluru. It provides a cost-effective transportation solution for its users. It is a dockless scooter rental service that lets customers rent scooters for a one-way journey. Vogo uses an OTP-based IoT sensor in its scooters to access the key without the need for human intervention.
“At scale, Ola has understood the demand-supply gaps for customers and we are looking to leverage that data to choose pick up points for Vogo users. Our long-term goal is to turn Vogo into a 100-city play with dense penetration in key cities,” Anand Ayyadurai, founder and CEO of Vogo.
Currently, the startup is operational in Bengaluru and Hyderabad with limited pickup and drop off points. The startup is looking to add another 1,000 pickup points across Bengaluru and Hyderabad, as it looks to expand its fleet of 500 scooters to over 30,000 in the next two years.
There is a growing interest in the two-wheeler rental market in India, as people look towards two-wheelers as a cost-effective and an efficient mode of transportation in crowded metros.