Investors pumped in $904 million through 26 deals in the nine months to the end of September, including in battery manufacturing and battery replacement and charging stations, according to data from Venture Intelligence. By 2021, the sector had received $1.8 billion in investment from 31 deals.
“We believe that electric vehicles are at an inflection point in many vehicle categories – the total cost of ownership is already favorable for two-wheelers and is close to par for three-wheelers,” Padmanabh Sinha, managing director and chief financial officer, private equity, National Investment and Infrastructure Fund (NIIF), told ET.
These contracts are taking place across the EV ecosystem, including battery manufacturing companies, battery exchanges and charging stations. The government led by Narendra Modi has set a target of electric vehicles to be 30% of private cars, 70% of commercial vehicles and 80% of two and three wheelers by 2030.
This month, electric vehicle parts maker Vecmocon raised $5.2 million from investors led by Tiger Global and Blume Ventures.
So did Revfin, an individual driver financing platform, which closed a $10 million Series A led by Green Frontier Capital (GFC), India’s first venture capital fund focused on climate-related investments.
In August, Exponent Energy had raised $13 million in a Series A funding round led by Lightspeed, marking its first investment in the domestic EV space. Bengaluru-based Exponent Energy plans to use the funding to expand its electric pump network to 100 location points per city, starting with Bengaluru. The company is backed by venture capitalists YourNest VC, 3one4 Capital and AdvantEdge VC, among others.