Trying to solve the last-mile connectivity issues at a lower price point in urban cities, two-wheeler rentals have emerged in the last two years. One such startup is Vogo, which is backed by cab-hailing service provider Ola.
Vogo is now in talks for raising $2 million in a new bridge round from the company’s existing investors. Last month, the company had indicated that Kalaari Capital is participating in its bridge round.
However, as it turns out, Kalaari Capital as well as Matrix Partner, both are investing a million dollars each in the company, brining the total of the said bridge round of funding to $2 million. The development comes weeks after it was reported that Vogo is in talks to raise around $40 million in a new funding round which could be led by Lightstone Aspada, along with Korean investor Mirae Asset Management.
Prior to that, the company’s plan to raise funds from Goldman Sachs fell through. About two months ago, the startup had signed an exclusive term sheet wherein Goldman Sachs was to lead a $50 million round in the company, valuing it at about $200 million. However, an internal restructuring of Goldman Sachs’ private equity and investment team led the company to withdraw its offer a few weeks ago.
Thus, the company will now be settling for a smaller $40 million round but now it seems that the company is set for $2 million bridge round before other funding round materialise. As for the $40 million round, Aspada is set to invest $10-15 million while Mirae will invest about $4 million and rest of the amount will come from Stellaris Venture Partners, Matrix Partners and Kalaari Capital.
Vogo was founded in 2016 by Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal. The company allows users to locate bikes on its app and use them for travel within the city. The scooters are fitted with patented technology that allows users to directly access and start the scooter via its app.