Sequoia India and Accel back on-demand scooter startup in $12.2M deal

Two of India’s most prominent VCs are backing a motorbike on-demand service after Sequoia India and Accel led a $12.2 million investment in Metro Bikes. Sequoia India and Accel were joined in the round by Raghunandan G, who founded TaxiForSure which sold to Ola, among other investors.

Metro Bikes started out as a luxury bike rental service in 2014 — initially as “Wicked Rides” — and it launched scooters (motorbikes) and other two-wheel rentals in 2016. Now, the company is rebranding to Bounce and refocusing its business to on-demand scooter (that’s motorbike in U.S. parlance) rentals for first and last mile transportation. The idea is to appeal to commuters, who can pick up a bike at their nearest location and later leave it at an endzone. The cost is based on distance and time spent.

Bounce is currently present in Bangalore, where it has 2,000 scooters currently, and Hyderabad, where it has around 500. The plan is to increase those numbers but the company is waiting on a permit to operate electric scooters, once it gets that it will only deploy electric, CEO Vivekananda Hallekere told TechCrunch in an interview. Its current mix of vehicles also includes bicycles, electric bicycles and kick scooters available.

The startup is going to hone its focus on Bangalore and Hyderabad for now, with no new expansions for 6-10 months, he added. Looking further forward, Bounce is aiming to be nationwide by 2020, while Hallekere said he sees the potential for deployment in Southeast Asia in the future.

Bounce claims that it is currently seeing around four rides per vehicle per day on its on-demand platform, the company is targeting seven to twelve rides which it believes will bring it to a good level of revenue. Although Hallekere did stress that the core business is anchored in sustainability.

That’s down to the funding of the fleet, which the CEO said is financed by institutional investors who purchase the assets in exchange for a cut of revenue. That helps cover a significant portion of operating expenses, while in other cases Bounce works with OEMs who provide vehicles under similar terms.

Bounce’s founding team (left to right): Vivekananda H R, CEO; Varun Agni, CTO; Anil Giri Raju, COO

Bounce is entering a fairly congested market in India, with other startups include Wheelstreet — which TechCrunch wrote about earlier this year — ZipHop also competing with similar services. Hallekere, the Bounce CEO, said that the company’s history in the business and its technology can help it stand out.

Added to that, Bounce said it is working closely with authorities to help ease last mile congestion. For example, the company is one of a number to have a struck a deal with Bengaluru Metro Rail Corporation Ltd. (BMRCL) to put rental bikes at 36 metro stations. It also landed a deal with corporate to enable parking across the city. The company said it plans to pursue similar arrangements with metro operators in Hyderabad and other cities when it expands.

“The first mile and last mile are essential to having public transport work in India,” Hallekere said. “It’s very natural for Indians to go on scooters and we started with metro bikes keeping this in mind. We want to make an impact and enable people to ditch cars.”

Bounce is also looking to introduce a pooling service that would enable scooter owners to add their vehicles to the company’s fleet and make money when they are used.

The Accel team is coming to Disrupt Berlin

Every time Accel invests in a startup, it’s an instant positive sign in the startup community. The venture capital firm has a rich history with decades of investments in successful startups. That’s why we’re excited to have four partners at Accel on stage at Disrupt Berlin.

Philippe Botteri, Sonali De Rycker, Luciana Lixandru and Harry Nelis will all relocate their partner meeting to our stage.

Accel is a different VC firm for many reasons. First, while the firm started in Silicon Valley, the team bet early on the European startup scene, back in 2001. With an office in London, the team keeps an eye on the entire continent for investment opportunities.

The firm has invested in Deliveroo, BlaBlaCar, Supercell, Spotify and so many others. With such a good track record, it’s clear that some recent investments are also going to become massive companies — nobody has realized it just yet.

In November, we will have four Accel partners on stage to discuss the firm’s investment thesis, each partner’s current obsessions and their collective thoughts on the startup scene in Europe.

It’s going to be a great way to hear the granularity of a team with strong beliefs. I’m sure they don’t always agree on everything, but somehow they manage to invest together as a firm.

TechCrunch is coming back to Berlin to talk with the best and brightest people in tech from Europe and the rest of the world. In addition to fireside chats and panels, new startups will participate in the Startup Battlefield Europe to win the coveted cup.

Grab your ticket to Disrupt Berlin before August 1st as prices will increase after that. The conference will take place on November 29-30.


Philippe Botteri, Partner, Accel

Philippe Botteri focuses on SaaS, enterprise and marketplace businesses.

Philippe led Accel’s investments in DocuSign (IPO), PeopleDoc, Qubit, Algolia, BlaBlaCar, Doctolib and Zenaton. He also works closely with the team at Fiverr and CrowdStrike. Prior to joining Accel, Philippe was with Bessemer, where he worked with the firm’s SaaS and Ad Tech investments including Cornerstone OnDemand (public), Eloqua (public) and Criteo (public).

Philippe is from Paris and graduated from Ecole Polytechnique, where he is a member of the Entrepreneurship Advisory Board, and Ecole des Mines.

Sonali De Rycker, Partner, Accel

Sonali De Rycker focuses on consumer, software and financial services businesses.

She led Accel’s investments in Avito (acquired by Naspers), Lyst, Spotify, Wallapop, KupiVIP, Calastone, Catawiki, JobToday, Wonga, Shift Technology and SilverRail. She is also an independent director of Match Group (public). Prior to Accel, Sonali was with Atlas Ventures.

Sonali grew up in Mumbai and graduated from Bryn Mawr College and Harvard Business School.

Luciana Lixandru, Partner, Accel

Luciana Lixandru focuses on consumer internet, software and marketplace businesses.

She helped lead Accel’s investments and ongoing work in UiPath, Deliveroo, Framer, Avito, Catawiki, Vinted and others. She is also an independent director of Showroomprive (public). Prior to Accel, Luciana was with Summit Partners.

Luciana is from Romania and graduated from Georgetown University.

Harry Nelis, Partner, Accel

Harry Nelis focuses on consumer internet, financial services and software companies.

He led Accel’s investments in CHECK24, Funding Circle, KAYAK (IPO; acquired by Priceline), Showroomprive (IPO), WorldRemit, Celonis, Callsign, Instana and others.

Harry started his career as an engineer at Hewlett-Packard before founding the venture-backed software company E-motion.

Harry is from the Netherlands and graduated from Delft University of Technology and Harvard Business School.

Blue Vision Labs, which builds ‘collaborative’ AR, emerges from stealth with $14.5M led by GV

Blue Vision Labs, a London-based augmented reality startup co-founded by computer vision experts from Oxford and Imperial College, is emerging from stealth today with a new platform that it claims will be the first to bring ‘collaboration’ to the AR experience: with an app built on Blue Vision’s technology (via its API and SDK), multiple users will be able to see the same virtual objects, and interact with each other in that virtual space with spatial accuracy that hasn’t been seen in widely-available AR services before.

Scenarios where this kind of feature could come in useful could include multi-player games, on-street navigation apps, social media applications and education. Peter Ondruska, the startup’s co-founder and CEO, tells me that Blue Vision’s tech can pinpoint people and other moving objects in a space to within centimeters of their actual location — far more accurate than typical GPS — meaning that it could give far better results in apps that require two parties to find each other, such as in a ride-hailing app. (Hands up if you and your Uber driver have ever lost each other before you’ve even stepped foot in the vehicle.)

Blue Vision has been in stealth mode for the past two years building its product — and its founding team, which also includes Lukas Platinsky, Hugo Grimmett, and repeat entrepreneurs Andrej Pancik and Bryan Baum, have been working on the idea since 2011 — but now it is finally hitting the ground running.

Along with the launch of its SDK for developers, Blue Vision announcing that it has raised $17 million in funding — $14.5 million in a new Series A led by Alphabet’s GV, plus another $2.5 million in Seed funding that it raised earlier from Accel, Horizons Ventures, SV Angel and others — all of whom also participated in this latest round, too.

The SDK will initially be free to use, Ondruska said.

There’s been a surge of interest in augmented and virtual reality technology in the last couple of years, fuelled by some interesting moves from larger tech companies like Google and Apple — launching developer kits to build applications, and working on more hardware to consume it — investments by larger media companies in building content for these platforms, and the hundreds of millions of dollars that investors are pouring into the army of startups that are building both software and hardware to usher in this new age of how we will, apparently, soon be seeing the world.

Some of these investments have so far felt like audacious moonshots. (Magic Leap’s hundreds of millions of dollars in funding, for example, have yet to materialise into anything we can use, virtually or otherwise.) But some are making their way to people today, and causing a stir, if not a massive wave of usage. (Think here of Apple’s ARKit and Google’s ARCore.)

And VR development has even already started to tackle the collaboration challenge too: recall Facebook’s Oculus division work on Rooms, where you can interact with multiple people.

Blue Vision’s approach is a little different, in that it requires no more hardware than what many people already have — a smartphone and a basic smartphone camera — both to interact with the experience and to ingest the environment to create it. The fact that it provides that relatively low barrier to entry, while also doing an enormous amount of heavy lifting at the back end to solve a persistent challenge in AR, is what potentially makes the company unique and noteworthy.

“They have reduced the need for specific, tailored hardware,” said GV’s Tom Hulme, who is joining the board. “Where we might have needed multiple lenses before, they have achieved same thing with a basic smartphone lens.”

Some of that heavy lifting has also involved building highly detailed maps that developers can now use to build collaborative AR experiences: the idea here is that the map of a space becomes the canvas onto which all of the other objects get placed for their interactions.

Ondruska said that initially the company has built maps covering the city centers of London, San Francisco and New York, with plans to add more locations. Users, he said, can also essentially “build” locations on the fly while using apps powered by Blue Vision, although these would work less well in fast-moving environments, where you might need to reference locations more accurately and pick up more detail.

Some have projected that AR-based applications could generate $83 billion by 2021. That seems like a big leap, considering we’re now already at 2018 and so far our biggest “hit” in AR has been Pokemon Go. Ondruska believes that this is because there have been missing pieces in making AR a truly seamless and smooth experience, and that his team has built the parts that will complete the picture.

“One of the reasons why AR hasn’t really reached mass market adoption is because of the tech that is on the market,” he said. “Single-user experiences are limiting. We are allowing the next step, letting people see the right place, for example. None of that was possible before in AR because the backend didn’t exist. But by filling this piece, we are creating new AR use cases, ones that are important and will be used on a daily basis.”