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Bounce Infinity Raises $20 Mn From Sequoia, Others After Laying Off 3-4% Workforce

Bounce has announced funding weeks after it reported Bounce laid off about 3-4 per cent of its workforce (of nearly 500-700 employees base) as part of its restructuring exercise

Bounce Infinity Raises $20 Mn From Sequoia, Others After Laying Off 3-4% Workforce
POSTED ON January 30, 2023 4:11 PM

Bike rental and electric vehicle (EV) start-up Bounce Infinity recently raised $20 million from its existing investors, including Sequoia Capital, weeks after a round of layoffs. The funds will provide Bounce with a cash runway while it continues to negotiate a strategic sale or secure additional funding from external investors. The company has raised a total of $234.2 million from investors to date.

Bounce chief executive officer (CEO) Vivekananda Hallekere confirmed the recent funding round and the participation of existing investors like Sequoia, but declined to comment on plans for a potential strategic sale. The latest funding round comes just weeks after Bounce laid off 3-4 per cent of its workforce, which was primarily in its non-original equipment manufacturer vertical.

Founded in 2014 by Anil G, Varun Agni, and Vivekananda Hallekere, Bounce initially offered bike rental services, but pivoted to the EV space in 2022. The company now manufactures EV scooters and allows users to rent them from designated spots. Bounce has also acquired two other start-ups in the past, including Twenty Two Motors and ofo India, further expanding its reach in the industry.

In the financial year (FY) 2021, the company’s revenues shrunk by about 52 per cent, registering Rs 53 crore. It majorly earned income from fixed deposits' interest and other investments. The same year Bounce’s total expenses were recorded at around Rs 358 crore with only employee costs accounting for about 40 per cent.

In 2022, the company laid off nearly 80 per cent of its workforce which is at least 300 people, including senior leaders, as part of a cost-cutting exercise, as reported by Moneycontrol.

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