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Bounce is in advanced talks to raise $20-30 million in about a month, according to two people aware of the development, much lower than the amount the company had been looking to secure earlier this year.

Bounce Co-founder and CEO Vivekananda Hallekere confirmed the move.

A new investor is likely to lead the round while existing investors including B Capital, Sequoia Capital India, Chiratae Ventures and Accel will participate, the persons said.

The capital-raise is expected to be a downround or remain unchanged from its current valuation of a little over $500 million, one of the persons quoted above told YourStory.

The deal is expected to be finalised next month.

Vivek did not comment on the valuation or the new investor the company is in talks with. Existing investors could not be reached immediately for comment.

The muted valuation is likely a fallout of both Bounce’s multiple pivots in its core business to challenging macroeconomic conditions. 

Bounce was founded in 2014 by Vivekananda Hallekere, Varun Agni, and Anil G as an app-based platform for booking two-wheeler rentals. The company made a pivot to manufacturing electric vehicles with the launch of its electric scooter earlier this year and has been focusing on strengthening its battery swapping network since.

The smart mobility startup has raised close to $200 million till date. It raised $105 million in a Series D round in January 2020, just a few months before the pandemic hit.

The Bengaluru-based company was looking to raise $100 million in 2022 to launch new products and expand its battery-swapping network, according to an ET report.

The plan is likely to have been stalled due to the wider economic slowdown, according to the persons quoted above.

The company also laid off close to 80% of its workforce last year as part of a cost-cutting exercise.

Bounce’s operating revenue shrank 83% to around Rs 15 crore in FY21 from Rs 87.5 crore earned in FY20.