By Business India Editorial

Is a mobility war brewing in India? To be precise, are we going to see a stiff competition in the two-wheeler EV sector in the biggest two-wheeler market in the world? And, to be even more specific, is Bounce breathing down the neck of Ola?

December last year, Bengaluru-based Bounce priced its first electric scooter at as low as Rs36,000, considerably undercutting the heavily-backed rival Ola, which has priced its electric scooter at $1,350.

The startup, backed by B Capital and Falcon Edge, launched its first electric scooter called the Bounce Infinity E1 that features a swappable battery and several other unique features that are designed for the Indian roads.

Customers will be able to swap the battery once it discharges from a nearby swapping station. The startup is building a network of swapping stations, for which it is tapping thousands of gas stations as well as mom-and-pop stores, in several cities, Bounce said.

In an interview with TechCrunch last year, Vivekananda Hallekere, co-founder and CEO of Bounce, said: “It’s pretty big, not just for us but we believe that it’s a game-changer for India as well.” The startup said it has tested the swappable battery for over 200 million kilometres.

The CEO said that Bounce had already set up a factory in Rajasthan and was planning to set up another one, adding that Bounce was setting aside $100 million to invest in the electric vehicle business in the next one year.

Bounce said that its customers have the options to buy the vehicle with or without battery. Depending on the state subsidiary, prices will vary. For example, Bounce said, its Infinity E1 without battery could cost $480 in Gujarat, and with battery could cost $800.

Those opting to go for the Bounce Infinity E1 without the battery will pay for swapping each time they replace an empty battery, the startup said. “This pushes the running costs of the scooter down substantially, by as much as 40 percent compared to conventional scooters.”

According to the company, the Bounce Infinity E1 can run as fast as 65 kmph and lasts for about 85 km on one charge.

Electric vehicles are yet to make an impact in India market, which is the world’s largest two-wheeler market.

Meanwhile, Ola Electric said on it has raised $200 million in a new financing round. Tekne Private Ventures, Alpine Opportunity Fund and Edelweiss are among those that financed the new round, which values Ola Electric at $5 billion, up from $3 billion in September last year, the Bengaluru-headquartered startup said.

“I thank the investors for their support and look forward to partnering with them to take the EV revolution from India to the world,” Ola Electric co-founder and CEO Bhavish Aggarwal said in a statement. The startup is looking to expand into more categories, including cars, he said.

Ola Electric last year announced its first electric scooter, called Ola S1. Priced at about $1,350, the battery-powered scooter offers a range of 121 kilometers (75 miles) on a complete charge.