The latest capital infusion, which is an extension of the series C round, will be utilised to expand and electrify the fleet, to increase focus on achieving profitability by improving unit economics, asset utilisation and to optimise marketing growth through better consumer understanding, a statement said.
With net positive contribution margins, VOGO is making strides towards achieving profitability by the end of this year, it added.
Founded in 2016, by Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal, Vogo operates in Bengaluru and Hyderabad. The Ola-backed firm has 3 mn registered users and has served over 10 mn rides covering about 130 mn km.
“Our focus on a disciplined approach to growth during the pandemic has helped us to come out stronger with competitive scale and leadership in profitability,” Vogo co-founder-CEO Anand Ayyadurai.
He added the firm continues to build on its strengths and roll-out a profitable electric vehicle offering going forward. “Having significantly improved our unit level profitability in our existing business this year, we intend to utilise this capital to strengthen our product line and focus on better customer experience going forward,” he said.
The company has been registering strong month-on-month growth.