Bounce-which is one of the Bengaluru-based electric scooter makers-is likely to post a really sharp rise in its financial performance, targeting an annualized revenue of more than ₹150 crore for the fiscal year 2025 or FY25. The estimated figure is four times what it posted in FY23. Of course, that’s also a strong turnaround for the company.
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Optimistic revenue growth can be attributed to multiple long-term deals across segments, likely to fuel Bounce and operational efficiency. Sources close to the company’s earnings are said to be positive EBITDA for September 2024. The average revenue run-rate has reached ₹200 crore in October 2024, after having a tough fiscal year with an operating revenue of just ₹36 crore in FY24 from ₹91 crore in FY23.
The significant decline in revenue for FY24 was largely due to difficulties in compliance with Phase 2 battery regulations that led to the company halting its production for six months and not launching new scooters within the first half of the fiscal year. As a result, Bounce’s total revenue for FY24 was at ₹35.88 crore, which resulted in a loss of ₹44 crore for the period.
Bounce’s journey saw a significant inflection point at the beginning of FY22 after it acquired 22Motors and shifted its focus to electric scooter manufacturing. This strategic pivot seems to have begun to yield results because the firm has more significantly scaled up its operations compared to its earlier business model, mainly centered on custom manufacturing.
In FY23, Bounce generated revenues of ₹91 crore, with significant losses to the tune of ₹197 crore. During the same period, it mints ₹35.88 crore from the sale of scooters, while custom manufacturing for Belrise, an auto component along with white goods segment company, generated additional ₹51 crore.
Bounce has lately focused a lot on growth through electric mobility solutions for B2B companies in logistics, e-commerce, and quick commerce. Bounce’s “plug-and-play” EV model makes the process easy for businesses to switch, as it integrates all operational costs and maintenance into the product. This model is designed for business needs where reliable transportation options are a must.
Bounce claims to be the only original equipment manufacturer in the EV sector that offers an uptime guarantee, flexible battery options, and access to battery-swapping services from multiple providers. This innovative approach not only increases the operational efficiency of its clients but also positions Bounce as a competitive player in the rapidly evolving EV market.
Bounce raised around $200 million from multiple rounds of funding, and currently, Accel remains the largest stakeholder, holding 26.62% of the company, followed by Peak XV and B Capital. The financial backing received from these notable investors has given Bounce the much-needed capital to innovate and expand its offerings in the electric scooter space.
As Bounce prepares for FY25, the company’s aggressive revenue target of over ₹150 crore clearly indicates that it has learned its lessons from earlier times and is looking to regain ground while capitalizing on the increasing demand in electric scooters. Bounce currently has a solid foundation built upon innovative business practices and a B2B solution focus. The upcoming fiscal year will be critical as the company seeks to reinforce its market position and deliver on its revenue promises.
