Mobycy raises $10 Million in series A funding round

Mobycy raises $10 Million in series A funding round

Mobycy replaces bicycles with electric scooter Zypp.

The company has now 300 Zypps on action and plans to put 1,00,000 Zypps on road by next year.

Mobycy charges Re.1 per Kilometer for using Zypps.

Gurugram based Bycyshare Technologies private Limited, owner of Mobycy is finalizing a $10 Million Series A funding round to enhance the growth of its business. Dockless bike sharing platform Mobycy has received term sheets from a clutch of strategic investors and venture capitals. Akash Gupta, Mobycy CEO and chief executive has initiated signing term sheets and expects to dilute 30-40% of its equity in the upcoming $10 Million round. The investors are a mixture of global and local investors from the US and South East Asia. German investment banking firm IEG is also going to advice Mobycy on the fundraising process. The company’s existing investors Venture Catalysts and new investors are also going to participate in the round.

Related : Packed food startup Venture Catalysts raises funds from Haldiram

Initially when Mobycy was initiated the plan was to enable short distance commuters to rent bicycle via an app. The bicycles have a GPS device so that Mobycy could track it. Users can locate bicycles around them, unlock bicycles using a QR code, and ride them and then park and their respective destination.

Mr. Gupta said, our plan was quite simple but was having some limits. “We acquired 25,000 users but there were various problems like uncertain whether condition and road infrastructure in using bicycles, therefore, we moved to electric scooters.”

Related : Ola backed VOGO steps towards electric scooters

Mobycy electric scooter will work in the same way as of bicycle-only reformations are done in the way the company operates its backends. The company has decided to make its own scooter Zypp instead of buying them as they did with bicycles. The company has designed scooter and manufacturing responsibility is assigned to independent vendors.

Gupta said, “we have now 300 Zypps on action and will move to 3,000 Zypps in short term. The plan is to put 1,00,000 Zypps on road by next year. He also added recently Zypps are currently available only in Hyderabad, Gurugram, and Noida. Its complete scooters do 1,500 to 2,000 rides daily and company is targeting for millions of ride daily in next year. The company charges users according to the number of kilometers they use Zypps. The charge is Re.1 per Kilometer and generally, the driving distance is 20 kms so our average price is Rs. 25-30. He also claimed that shift to electric scooters has attracted investors in our initiative. That’s why we have signed the IEG to close series A round. We also have interest in Series B round of funding and wish to raise $60-70 Million in upcoming years.” 

Zypp is an innovative initiative by Mobycy. Now successfully output of a firm is an awaiting update for all. Stay connected with us!