Homegrown cab aggregator Ola is in talks with Bangalore-based dockless scooter and motorcycle sharing startup Vogo to lead an investment round as the segment gets much hype and wide response globally.
According to reports,early-stage investors Stellaris Venture Partners and Matrix Partners will also be participating in the first institutional funding in the company.
While the startup is likely to pick up $5-6 million, it may go on and raise over $10 million with bulk of the capital coming in from Ola.
Dockless scooters and motorcycles can be located and unlocked through a mobile app and they don’t need a docking station.
Bangalore-based Vogo was started in 2015 by Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal. Presently, it operates in Bangalore and Hyderabad.The company is looking to expand to other Indian post this funding round.
Vogo, unlike Chinese majors Ofo and Mobike, is not a bicycle-sharing platform. Instead, it lets users rent gearless scooters and motorbikes from designated pickup points throughout the city and drop them off at another fixed location at the end of their ride, using an app.
Ola may integrate Vogo into its platform as an additional option. However, both the companies have not yet commented about the exact figures of the deal.