Bengaluru-based automated scooter rental startup Vogo has reportedly secured an amount of around $7 million (Rs 48 crore) in a Series A funding round. The latest round was led by ANI Technologies Pvt Ltd (Ola’s parent company) and Pawan Munjal (Hero MotoCorp chairman).
The other existing investors namely Matrix Partners India, Stellaris Ventures, and angel investors also participated in the funding round.
The funds raised through this funding round will be utilized by the company for the purpose of expanding its operations further in the cities it already exists, which include Bengaluru and Hyderabad.
“We are trying to solve the use case for daily commuters who can probably walk 100 to 150 meters to pick up our scooters. These are all gearless vehicles which ensure that a cross-section of users can access them,” stated Anand Ayyadurai, founder and chief executive of Vogo. “Our goal is to make a Vogo scooter available in every nook and corner of the country that’s plagued with issues like traffic congestion, pollution and growing population.”
Founded in 2016, Vogo focuses mainly on people travel daily for about three to six kilometres. Vogo scooters come with a lockbox which dispenses keys when the customer enters an OTP. The customers are required to upload a copy of their driving license on the app which is verified by the company.
After this deal, the startup is also looking to make fuller use of the association with Ola to study traffic and the heat map of users to identify potential access points.
“Short-haul and last-mile commuting is an unsolved problem in mass transportation in India. We believe Vogo can both increase the reach of public transport as well as provide an affordable alternative for areas not yet serviced by it,” said Ritesh Banglani, a partner at Stellaris Venture Partners.
The company currently operates only in Bengaluru, Hyderabad, Manipal, and Mysuru and claims to get more than 5,000 orders per month. It is now planning to increase and set up build more than 1,000 pickup points in Bengaluru and Hyderabad.