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E-mobility startup Bounce is set to close its latest Series E funding round at $20 million, with participation from existing investor Sequoia Capital India and others.

The startup has also set its sights on an initial public offering (IPO) in the next couple of years, a source close to the matter told YourStory.

Bounce had closed $5.3 million of the $20 million in March this year, as per an RoC filing with the Ministry of Corporate Affairs.

YourStory had, in November last year, exclusively reported that Bounce was in advanced talks to raise $20 million to $30 million, much lower than the amount it had been looking to secure in early 2022.

The startup, which started out as a two-wheeler booking company in 2014, has raised nearly $200 million to date. Its Series D round, which the company finalised just before the pandemic hit, closed at $105 million.

An investor aware of the proceedings at Bounce told YourStory that while it is a tough market for anyone to raise funding, Bounce’s recent pivot to e-scooters may have required an “adjustment of perception” on the part of its existing investors—which probably is why the $20 million looks like a “down round”.

“EV is a lucrative market and Bounce’s founding team has shown they can produce results. It’s also an intelligent pivot given the positive sentiment for EVs in India.”

“If this was a new company, a $20 million fundraise would have been a great initial round. Bounce has a lot of data it can capitalise on and build a solid EV business,” the investor added.

The Bengaluru-based company pivoted to manufacturing innovative electric two-wheelers in 2022, after scrapping its ridesharing business. It aims to sell 10,000 EVs per month by the end of the current financial year.

Bounce declined to comment on the story.

The startup has made significant strides in reducing its financial losses. In the FY ending March 31, 2022, it reported a consolidated loss of Rs 243.3 crore, lower than Rs 305.6 crore in the year-ago period.

Its expenses fell 23% in the year, mainly due to mass layoffs at the company. According to media reports, Bounce laid off close to 80% of its total workforce last year to reduce expenses.