But Bounce’s overall revenue only shrunk 52% to Rs 53 crore as the company earned income from interest from fixed deposits and other investments. In January 2020, before the pandemic hit, the company was able to raise $105 million from Accel Partners and B Capital at a valuation of $520 million. This fundraise helped Bounce increase its income from interest.
The proceeds also helped the firm pivot to electric vehicle manufacturing later in 2021, by acquiring 22 motors for $7 million in November. The company said in October that it would invest $25 million into the EV business. The financials do not reflect the company’s foray into the EV business.
Bounce’s losses shrunk 97% to Rs 29 crore as expenses fell from Rs 143 crore to Rs 29.9 crore. According to the financials, Bounce reduced expenses across advertising and promotion, legal, rent, power and fuel. As the mobility business took a hit, the company laid off 40-60% of its workforce in February 2021. It had previously laid off 130 employees in June 2020.
Before the pandemic, Bounce, like Vogo, was known for its shared two-wheeler service. Yulu also competes with the company but all of these businesses have moved in different directions. While Bounce has moved on to EVs, Vogo was acquired by Mumbai-based Chalo. ET reported
about the acquisition on November 13. Bounce and Yulu now provide vehicles for food and essential delivery workers.
Bounce’s shared and personal mobility business will co-exist as it plans to use the same battery swapping technology across all its vehicles. The battery-as-a-service model has allowed the company to price its scooter, called Bounce Infinity, at Rs 45,099 (ex-showroom).
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The company has started test drives in seven cities and plans to start delivering the scooter next month. Bounce recently said it partnered with brands such as Nobroker, Park+, Readyassist, Kitchens@, HelloWorld, and Goodbox to set up battery swapping stations.
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