Venture capitalists and investment bankers are heading to electric vehicle companies and startups such as Statiq, Greaves Mobility, ABB India and Battery Smart as the country’s capital markets batter with indices at historic highs low, and conventional startups are finding it increasingly difficult to raise funds.
Following the central bank’s rate hike aimed at controlling inflation, there has been a general tightening of the liquidity position in the markets.
Statiq, an electric vehicle charging network company that has partnered with Shell Ventures to drive adoption of electric vehicles by building a charging ecosystem in northern India, has raised $25.7 million. dollars (over ₹200 crore) under its Series A run by Shell Ventures. Proceeds from this funding will be used to increase network infrastructure bandwidth as well as fund their product engineering investments.
Akshit Bansal, the company’s co-founder and CEO, said the fundraiser will help the organization’s charging infrastructure projects. “Shell and Statiq share a vision of driving the transformation towards sustainable modes of transportation and having them as an investor is an important step for Statiq,” he added.
Besides Statiq, Dubai-based META4 Group said it would invest Rs 250 crore to set up an electric vehicle factory in Telangana. Two weeks ago, Saudi Arabia-based global investor Abdul Latif Jameel confirmed investments of up to $220 million (roughly Rs 1,700 crore) in 2-3 wheel mobility company, Greaves Electric Mobility.
Ather Energy is also considering an IPO in the near future. The company has already raised $128 million from the National Investment and Infrastructure Fund’s Strategic Opportunities Fund and Hero MotoCorp in its Series E funding round. from Ather Energy, the 450X, are up 25% quarter over quarter. The Bengaluru-based company already has a strong retail network across the country, with a presence in 32 cities with 38 experience centers. The company aims to expand to 150 experience centers in 100 cities by 2023,” the company said in a press release announcing the fundraising.
TVS Motor Company is also in advanced talks to raise Rs 4,000-5,000 crore, media suggest. The company’s iQube EV, which quintupled sales in April 2022, updated its offerings by launching three variants last month: the iQube, iQube S and iQube.
The electric mobility arm of global technology company ABB Group has acquired a majority stake in Bengaluru-based electric vehicle infrastructure company Numocity Technologies for an undisclosed amount. It is the first acquisition by a global company in the Indian electric vehicle space, according to a statement from ABB. Founded in 2018, Numocity provides solutions to operationalize and monetize the supply of energy to electric vehicles, including battery charging and swapping infrastructure.
EV battery swap network Battery Smart has raised $25 million in a Series A led by Tiger Global. This is the second funding round for the Gurugram-based company in the past seven months. Tiger Global led the Series A round with Rs 154.6 crore while Catalyst Trusteeship and Orios Fund participated with Rs 18.5 crore and Rs 20 crore, respectively. With this funding, Battery Smart has raised $32 million since launching the business in 2019.
Registered investment fund SEBI Oaks Asset Management, which has a corpus of Rs 700 crores and has invested in Hero Electric, said there was no shortage of capital for profitable businesses. that are focused on profitable growth,” added Vivek Anand PS, Founder and CEO of Oaks.
However, all is not well, as a report from Inc42, a media and technology platform, suggests. Many startups struggle to stay above water. The Inc42 report suggests that a total of 10,029 employees have been laid off by 27 Indian startups across the industry so far. Many of these startups are unicorns, including Vedantu, BYJU’S, Ola, Meesho, MPL, Unacademy, and Cars24 which have downsized and cut costs.
The demand for electric vehicles will only increase in the future. According to the Federation of Automobile Dealers Associations (FADA), sales of electric passenger cars increased 2.5 times to 17,804 units during the financial year, underscoring strong demand for green variants.
Even as India’s ecosystem of EV industry startups draws in, a study by Arthur D Little suggests it could still fetch around $20 billion by 2030, up from $6 million currently. Foreign investment does not include investments made by OEMs in the segment. According to the report, more than 30% of vehicles sold in India will run on electricity by 2030, with cross-selling of 10 million vehicles by 2030.
However, EV adoption for passenger vehicles is expected to be only 10% by the end of the period, which is a surprisingly low 5% of total EV sales. To achieve more than 30% adoption of electric vehicles, India will need about 800 GWh of batteries by 2030. To meet this growing demand, India is accelerating its plans to manufacture Li-ion cells in the country, providing $2.3 billion in government grants and more than $7.5 billion in investment potential, according to the report.
EV companies are firming up their financing plans
EV companies are firming up their financing plans