Delhi-based bike taxi startup Bikxie today said it has raised Rs 2 crore from GEMs Partners, a micro venture capital fund, and Sachin Khandelwal, the former chief executive and managing director at non-banking finance company Magma Fincorp.
The company will primarily use raised capital to upgrade its technology and infrastructure, besides, accelerating internal growth and expansion of operations in the country.
Considering sharing economy as the next big thing, Aditya Gupta of GEMS Partners said, “Bikxie has a huge market potential and growth is immense. The fact that the concept validation is proved with assets already operating at profitable margins along with the founders’ experience and commitment played a huge part in our decision making.”
Founded in January 2016 by Mohit Sharma, Divya Kalia and Dennis Ching, Bikxie offers last-mile connectivity to commuters via bike taxis and competes with bigger players such as Ola Bikes and UberMOTO in Delhi-NCR.
Bikxie offers an all-female service named ‘Bikxie Pink’ for women, where the bikes are driven by female pilots, which received tremendous response from female customers and media. The startup operates through a mobile app that is fully loaded with inbuilt safety and tracking features.
“Over the last one year or so, we have been able to successfully boost our revenues by expanding our offering to corporates as well, thus leading to higher bike optimisation. The fresh capital from GEMs will help us to scale up quickly within the NCR market and also expand to other cities,” Sharma said.
In January 2016, the company had raised angel round funding from an investment banker in the Middle East and a businessman based in South India. Previously, it had secured seed investment from a private equity professional.
Bike taxi services are gaining significant attention from the investor community. Two prominent players in the space Rapido and Baxi have raised multiple rounds of investments over the past few years. While Ola was reportedly considering launching Ola Bike in Kolkata last year, Uber is also looking to hold the significant market through its bike taxi service – UberMOTO.