Electric scooter manufacturer Bounce is poised to achieve an impressive turnaround, targeting Rs 150 crore in revenue for FY25. This projection represents over fourfold growth compared to FY24’s revenue of Rs 35.88 crore, marking a significant recovery and expansion.
FY24 Performance and Challenges
Bounce faced a difficult FY24, with revenue declining by 60.6% from Rs 91 crore in FY23 to Rs 35.88 crore. Losses narrowed from Rs 197 crore in FY23 to Rs 44 crore in FY24. The revenue shortfall was primarily attributed to:
- Phase 2 Battery Compliance Rules: Delayed production for six months, halting scooter launches in the first half of FY24.
- Shift in Focus: A strategic pivot to manufacturing electric scooters and partnering with B2B clients impacted short-term sales but set the stage for long-term growth.
Revenue in FY24 primarily came from:
- Scooter Sales: Rs 35.88 crore
- Custom Manufacturing (Belrise): Rs 51 crore
Growth Drivers for FY25
Bounce’s resurgence is fueled by several strategic initiatives:
- B2B Focus: Targeting logistics, e-commerce, and quick commerce companies with electric vehicle solutions.
- Plug-and-Play EV Model: Simplifies EV adoption by covering operational costs, maintenance, and battery-swapping services.
- Uptime Guarantee: Unique among OEMs, Bounce offers uptime guarantees and customizable battery options for clients.
By securing long-term contracts in multiple sectors and achieving positive EBITDA as of September 2024, the company is on track to exceed its ambitious revenue targets. Its October 2024 revenue run rate stood at Rs 200 crore, highlighting sustained growth momentum.
Industry Position and Backing
Bounce’s transformation began with its acquisition of 22Motors in FY22, signaling a shift toward EV manufacturing. The company claims to be a pioneer in integrating battery-swapping services with its offerings, positioning it as a unique player in the B2B electric mobility sector.
Key Financial Backers:
- Accel: 26.62% stake
- Peak XV Partners and B Capital also hold significant shares.
Bounce has raised approximately $200 million to date.
Outlook
Despite a challenging FY24, Bounce’s pivot to B2B solutions and its focus on operational efficiency have positioned it for robust growth in FY25. With innovations like uptime guarantees and battery-swapping partnerships, Bounce is carving a distinct niche in the highly competitive EV market.
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