Gurgaon-based Bycyshare Technologies Pvt. Ltd, which owns bicycle sharing startup Mobycy, has raised $500,000 (Rs 3.2 crore) in a seed round from a US-based angel investor, the company said.
The startup, which was launched earlier this year by the former vice president and marketing head of digital wallet firm Mobikwik, Akash Gupta, will use the capital to enhance operations, Mobycy said in a press statement.
“We are starting with 5,000 bikes and the plan is to expand to at least five or six cities within the first six months. We are also developing the technology and building the app. The fund will also be used for team building. We are a team of 10 now,” Gupta told VCCircle over the phone.
Mobycy’s smart bikes are enabled with internet of things (IoT) locking devices and global positioning system (GPS)-based tracking sensors. They can be operated without docks or stations for parking.
The startup claims that a user will just have to fire up the Mobycy app to find a bike, unlock it with the QR code provided to him or her. Once the trip is completed, the bike has to be pared at a safe place. The only exceptions are gated community and private compounds.
Mobycy currently rents out bikes at Re 1 per hour. The monthly plan requires users to make a security deposit of Rs 999, which is refundable, besides Rs 99 for two-hour rides per day. Users will have to sign up using their Aadhaar details. Students, however, can enrol using their college photo identification card, and will have to pay Rs 499 as security deposit.
The bicycles will initially be available across Delhi-NCR, including metro stations, markets and popular haunts such as North Campus and Cyber City.
Earlier this month, VCCircle had reported Gupta’s decision to quit Mobikwik to launch his own green-tech venture.
Gupta had started his career with IT major Infosys as a software engineer in September 2005. He also had stints in research firm Frost & Sullivan, Dell Technologies, and Airtel’s DTH division, where he rose through the ranks to become the national acquisition head, besides e-tailer Snapdeal. He joined Mobikwik as general manager, marketing, and got elevated as vice president and head of marketing.