Vogo, which operates dock based scooter sharing platform, has raised $20 Mn from LGT Lightstone Aspada and clutch of existing investors.
Existing investors that participated in this round included Matrix Partners India, Kalaari Capital and Stellaris Venture Partners.
Vogo will use the funds for expansion across domestic market and to further ramp up its IOT capabilities.
The Bengaluru headquartered company had last raised undisclosed amount of funding from clutch of angel investors in June last year. Notably, its latest fund raising round has come barely weeks after its major competitor Bounce secured whopping $105 Mn in a series D round.
Bike taxi startups are coming on their own, since investors are apparently seeing massive growth opportunity in the space. This was testified when ride hailing major Ola pumped massive $100 Mn investment in Vogo in 2018.
Ola’s investment brought a new vigor in the micro mobility space and signaled that the sector is finally ready for a huge takeoff.
According to reports, India’s bike rental market is a $300 Mn opportunity and experts believe that the market will continue grow at a healthy CAGR if the companies are able to find a favorable unit economics to reduce their high cash burn rate.
But finding a sustainable unit economies is a major challenge, given that companies have to offer rides at steeply discounted rates for building a strong customer base.
In the past, several well-funded bike startups like Tazzo and Iryd had to shut their shops due to widening losses and high cash burn rate.
However, Vogo is unlikely to find itself in such a pitiable condition, considering that it boosts a strong market traction. The company currently provides on demand bike rental service to more than $2.5 Mn people across the country.