Ola, VCs back India scooter sharing player Vogo
India-based ride-hailing platform Ola has committed $100 million worth of inventory to domestic scooter sharing business Vogo. It is part of a Series A round that also features Matrix Partners India and Stellaris Venture Partners.
The Ola investment will be used to add 100,000 scooters to the Vogo network, giving it a supply advantage without the burden of incurring significant capital expenditure. The two companies have also established a partnership that will see Vogo’s services become directly available through the Ola app, which has more than 150 million users.
Vogo launched its services earlier this year and is currently present in Bengaluru and Hyderabad, where its vehicles have carried passengers more than 20 million kilometers. A company statement didn’t disclose how many scooters are currently on the roads, but according to the Financial Times, the fleet numbers 2,000.
Although the scooters are dock-less, they must be collected and deposited at designated service points. Vehicles are booked in advance and unlocked using a one-time password generated by an app that connects to an on-board internet-of-things device. Payments are made online with Vogo charging INR1.2 ($0.02) per minute.
“Ola is committed to building a robust mobility ecosystem in India, creating a deep impact on livelihoods and how citizens get around. Our investment in Vogo will help build a smart multi-modal network for first-last mile connectivity in the country,” Bhavish Aggarwal, founder and CEO of Ola (pictured, right, with Anand Ayyadurai, founder and CEO of Vogo), said in a statement.
Founded in 2010, Ola claims to be India’s most popular mobile app for personal transportation, offering taxis, luxury vehicles, auto-rickshaws, and shuttle buses through its platform. The company is present in over 110 cities in India and claims to provide up to a billion rides each year.
It has received multiple rounds of private funding. In September, Sailing Capital and the government-backed China-Eurasian Economic Cooperation Fund (CEECF) invested $50 million at a valuation of $4.3 billion. This followed a $1.1 billion round in 2017 led by Tencent Holdings. These commitments coincided with Ola’s efforts to expand its services globally.
The company introduced dock-less bicycle-sharing services within India – known as Ola Pedal – last year, while Chinese rivals Ofo and Mobike entered the market at the start of 2018. Ofo has already shuttered its Indian operation as part of a broader pullback from overseas markets amid reports of mounting financial pressures. Both Ola and Uber offer motorbike taxi services in India.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.