Mumbai-based self-riding bike rental startup, ONN Bikes today said it has raised $692,000 in a pre-Series A round led by existing investor Z Nation Lab. The round also saw participation from JITO Angels and several Venture Catalysts’s prominent angel investors include Jayesh Parekh (Sunidhi Securities), Pankaj Harlalka (Narnolia Capital), Gaurav Gandhi, Nikunj Pachisia, and Vijay Lakhani.
ONN Bikes will use raised funds to build a stronger technology base, increase the fleet size, franchisee model promotion and to expand its services to more cities in India, the company said in a statement.
ONN Bikes is the newest entrant in the emerging Indian self-drive motorbike rental market. The startup was founded in 2015 by Shanky Munoth and Namit Jain, however, they started its operations in May 2016. Within a year, It has registered remarkable growth and is one of the fastest growing companies in the space.
Speaking on the investment, Namit Jain, Founder and CEO of ONN Bikes, said, “We are excited to have secured pre-Series A investment from Z Nation Lab, JITO Angels, and Venture Catalysts. Their vast expertise and combined networking capabilities will help us immensely in achieving our expansion goals by covering more cities and finding strong franchise partners. We are confident that, with such experienced investors and mentors on our side, we will solve major transportation challenges for the Indian market and establish ONN Bikes as the leading player in the self-drive bike rental domain.”
ONN Bikes is also currently the only player in its domain to have ventured into long-term vehicle leasing. The company operates in 5 major states of India and has earlier raised two seed rounds from Z Nation Lab and Grace Capital Ventures.
Pushp Mitra Das, Lead investor with Z Nation Lab, said, “We led the follow-on investment round because we have faith in the strong foundation that the ONN Bikes team is creating. The consistent growth with negligible cash burn and strong B2B partnerships speaks highly of the team’s execution capabilities. We have full faith that ONN Bikes will be able to sustain the growth momentum and continue growing at an accelerated pace.”
ONN Bikes counts Ola, Uber, and Swiggy amongst its growing clientele. Further, it plans to expand its range of electric vehicles in the coming months.