EV startup Bounce’s FY23 revenue jumps 500% to Rs 91 crore, cuts losses to Rs 197 crore

Electric scooter manufacturer Bounce has witnessed a significant financial turnaround in the fiscal year ending March 2023. The company's revenue from operations saw a six-fold increase, soaring to Rs 91 crore in FY23 from Rs 15 crore in FY22.

The growth comes after Bounce shifted its focus from bike rental services to becoming an electric vehicle (EV) manufacturer in 2022. This strategic pivot has evidently paid off, with electric scooters now constituting 92% of the company's total revenue.

Diversified revenue streams

Despite the primary revenue coming from electric scooter sales, Bounce has not put all its eggs in one basket. The company also earns from renting vehicles, selling spare parts, and software subscription charges.

An additional Rs 8 crore was made from interest on deposits, bringing the total income to Rs 99 crore in FY23. 

Expenditure and cost management

Bounce's journey to financial improvement also involved meticulous cost management. The cost of procurement, which is a significant part of the expenditure for the electric two-wheeler maker, constituted 30% of the overall expenses. 

Despite an increase in total expenditure to Rs 297 crore in FY23 from Rs 277 crore in FY22, Bounce effectively managed its costs, leading to a 19% reduction in losses from Rs 243 crore to Rs 197 crore. 

Funding and investors 

Bounce has raised over $214 million across several financing rounds, with Accel being the largest stakeholder. In January 2023, The startup raised $20 million in funding from existing investors, including Sequoia Capital (Peak XV Partners). 

It is also backed by InnoVen Capital, B Capital, Chiratae Ventures, Maverick Ventures, Falcon Edge India, and Omidyar Network, among others.