The boom in electric bike, scooter and moped startups has calmed this year. That isn’t stopping some startups like India-based Bounce from raising big checks. Bounce, which runs a moped rental service in Bangalore, announced it raised $72 million Monday in a round led by B Capital, Eduardo Saverin’s venture fund. Bounce’s new funds follow a raise six months ago by competitor Vogo, whose investors include Indian ride-hailing firm Ola.
The business of renting small, electric vehicles has a clear market in developing countries, where clogged traffic might make mopeds more reliable than Ola or Uber cars. But, like electric scooter rentals in the U.S. or Europe, Bounce will need to show they can manage and repair their fleets well enough to have a sustainable business. If they show hints of success, Bounce and Vogo could make acquisition targets for Ola or Uber.