Mumbai-based AlphaVector, which owns bicycle brand Frog, raised an undisclosed amount in a fresh round of funding from a mid-market private equity firm Avaana Capital, with participation from Titan Capital, a VC-arm run by Snapdeal founders Rohit Bansal and Kunal Bahl.
The startup, which had previously raised funds from Fireside Ventures, will use the current funding to expand its product offerings to cater to the growing Indian-middle-class and to launch electric bicycles.
The company also plans to invest in a state-of-the-art manufacturing facility with a capacity of one million cycles per year under the “Make in India” programme.
In a statement, AlphaVector also said that it will look to raise an additional $8-10 million in the near future to support its growth plans.
Sachin Chopra, CEO and Founder, AlphaVector, said,
“India sells 20 million bicycles every year and yet the bicycle category has remained stagnant with minimal innovation and trifling brand connect with consumers. AlphaVector has focussed on launching innovative yet affordable products that speak to and resonate with India’s young demographic and gives them access to an aspirational brand.”
Founded in 2015 by Sachin Chopra, Frog claims to be the first in India to introduce “3.0 high-stability tyres” cycle, “Magnesium light-weight” cycle, and the “belt drive no-hassle chain-free” cycle. It is also trying to disrupt the buying experience for its customers, from retail to its after-sales service support.
Frog already has a retail presence in more than 250 cities across 600+ retail points.
Anjali Bansal, Founder, Avaana Capital, added,
“New India wants high-quality products that feel comfortable and aspirational. As the fastest growing aspirational brand with a singular focus on creating affordable, comfortable, and stylish products for this target segment, we expect AlphaVector’s Frog cycles to emerge as a major player.”
Founded in early 2018, Avaana Capital provides capital and support to innovative businesses that provide financial inclusion, access to affordable goods and services, and market linkages to “Middle India”. It believes that investing in and helping scale such businesses creates attractive returns, as well as developmental impact.
In December 2019, Snapdeal's Kunal Bahl and Rohit Bansal also participated in the Pre-Series A funding round of Gurugram-based women wellness startup Azah through Titan Capital.
(Edited by Saheli Sen Gupta)