Two-wheeler rental service VOGO raised $11.5 million from its existing investors including Lightrock, Kalaari Capital, Matrix Partners and Stellaris Venture Partners in its Series C round. VOGO said the capital will be used to expand and electrify its fleet, achieve profitability by improving unit economics and asset utilisation, and to improve marketing.
VOGO said it has net positive contribution margins, and is looking at achieving profitability by the end of this year.
VOGO offers three different services to its customers - VOGO Now for short durations, VOGO KEEP for durations upto 2 months) and VOGO Flexi Keep which are customised rental plans.
The company also aims to make urban commute more efficient, eco-friendly and increase ride volumes in the next 18 months.
VOGO CEO and co-founder Anand Ayyadurai, said, â€śOur focus on a disciplined approach to growth during the pandemic has helped us to come out stronger with competitive scale and leadership in profitability. We are committed to build on our strengths and roll-out a profitable Electric Vehicle offering going forward.â€ť
Vaidehi Ravindran of Lightrock said, â€śWe continue to support them despite the uncertainty in funding in the sector because we believe this is the team that has the vision and execution to build a large mobility platform for the Indian customer.â€ť
VOGO was founded in 2016 by IIT and IIM alumni Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal and offers commuters self-ride two-wheeler rides in Bengaluru and Hyderabad. VOGO said it has 3 million registered users and has had more than 10 million rides.
â€śPost pandemic, VOGO has witnessed an overwhelming response from both the cities and are registering strong month-on-month growth. With a vision to make urban commute efficient and eco-friendly, the company intends to expand its fleet and ride volumes significantly in the next 18 months,â€ť VOGO said in a statement.