Bounce, An Electric Vehicle Startup, Experiences A Sales Surge Of Over 500% In FY23, Reaching INR 91 Cr

Bounce, the Bengaluru-based electric two-wheeler manufacturer, reported a positive step towards profitability in its latest financial results. The company's net loss for the financial year 2022-23 (FY23) declined by 19% to INR 197 crore, compared to INR 243.3 crore in the previous year. This improvement comes amidst a significant revenue jump, driven by the company's foray into electric vehicle (EV) sales.

Revenue Soars with EV Debut

Bounce's operating revenue witnessed a remarkable 510% increase, reaching INR 90.9 crore in FY23 from a mere INR 14.9 crore in FY22. This growth can be attributed primarily to the company's new business line – electric scooter sales. Bounce entered the EV market in 2022 and quickly gained traction. In FY23, the company generated around INR 83.5 crore from escooter sales, a stark contrast to the previous year with no EV sales. This shift in focus towards EVs highlights Bounce's strategic move to capitalize on the growing demand for sustainable transportation solutions in India.

From Rentals to Manufacturing

Founded in 2014, Bounce initially established itself as a popular bike rental platform. However, recognizing the potential of the EV market, the company pivoted its business model in 2022. Today, Bounce operates as a full-fledged EV manufacturer, selling its own line of electric scooters. It also maintains its bike rental services, offering a unique two-wheeler mobility solution that caters to diverse customer needs. This hybrid approach allows Bounce to tap into both the rental and ownership segments of the market.

Increased Expenditure But Improved Efficiency

While Bounce's revenue experienced a significant rise, its total expenditure also increased by 7%, reaching INR 297.3 crore in FY23 compared to INR 276.7 crore in FY22. A major contributor to this rise was the cost of raw materials. As an original equipment manufacturer (OEM), Bounce requires a steady supply of materials for scooter production. The company's procurement costs jumped to INR 89.1 crore in FY23 from a negligible INR 8.79 lakh in FY22, reflecting the ramp-up of its manufacturing operations.

Employee costs also saw a moderate increase of 6%, rising to INR 47.4 crore from INR 44.9 crore in FY22. It's worth noting that Bounce underwent restructuring exercises in both 2021 and 2023, resulting in workforce reductions. Despite these layoffs, employee costs still increased, suggesting the company might be strategically hiring talent to support its EV growth.

Funding Secured for Future Growth

Bounce's financial report doesn't disclose any fresh funding rounds in FY23. However, the company secured a significant $105 million in a Series D round back in January 2020 from investors like Accel Partners and B Capital. This funding, along with its improved revenue performance, suggests Bounce has a strong financial runway to fuel its future endeavors in the electric mobility landscape.

Looking Ahead: A Promising Trajectory

Bounce's FY23 results paint a picture of a company transitioning towards profitability. The significant decline in net losses coupled with a substantial revenue jump indicates a successful pivot towards the EV market. As the demand for EVs continues to rise in India, Bounce is well-positioned to capitalize on this opportunity. Its existing bike rental network provides a strong foundation for customer acquisition, while its manufacturing capabilities allow it to cater to the growing ownership segment. Bounce's future success will likely hinge on its ability to further streamline operations, optimize costs, and continuously innovate its electric scooter offerings.