chalo vogo deal: Chalo in talks to acquire two-wheeler rental startup Vogo

Bengaluru: Chalo, a mobile app that helps users track buses across cities and book bus tickets online, is in advanced talks to acquire two-wheeler rental startup Vogo in a share-swap deal, according to several people aware of the matter.

Chalo
had acquired Amazon-backed Shuttl, a bus service for office goers, last month.

The consolidation move comes after the Covid-19 pandemic and the consequent lockdowns crippled India’s mobility sector. And Vogo, which has a significant presence in Hyderabad and Bengaluru, wasn’t spared either. “They are in the final stages of closing the deal,” one of the persons cited earlier told ET.

Chalo’s cofounder Dhruv Chopra declined to comment. Vogo’s founder Anand Ayyadurai did not immediately respond to requests for comment.

Mobility startup Bounce, a competitor of Vogo, had to pivot after operations suffered due to the pandemic. From being a two-wheeler rental startup, it is transitioning into making electric scooters. This comes when Ola has entered the e-scooters space too.

Last month, Chalo
had raised $40 million in a funding round led by Lightrock India and Filter Capital. Vogo’s backers include Ola, venture funds Stellaris Venture Partners and Matrix Partners India.

In September, Ayyadurai had told ET that Vogo’s Hyderabad operations
had turned profitable and the company was aiming to do the same in Bengaluru. Hyderabad accounts for a third of Vogo’s operations, where the company has a fleet of some 20,000 vehicles.

Last month, Chalo had claimed that it clocked 20 million bus rides in the previous month. The company has around 15,000 buses live on its platform and a presence in 31 cities across several states, including Karnataka, Kerala, Madhya Pradesh, Bihar and Assam. Chalo also plans to expand internationally.