Caution EV startups, funding to hit speed bump ahead but investors hopeful of returning to normalcy
Even as the government has taken measures to support the targets projected for the incipient electric vehicle (EV) segment in the country, the startups in the EV space are likely to face challenges around fundraising, at least for the short term, according to experts. India has seen a proliferation of startups in the EV space in the past few years on the back of government’s vision for 2030, improving charging infrastructure and reducing carbon emissions apart from increased investors’ interest to back emerging EV startups. As a result, Tiger Global-backed Ather Energy, Yulu, Okinawa, Ratan Tata-backed Tork Motors, Revolt Intellicorp, ION Energy, Zypp, Euler Motors along with Ola’s unicorn subsidiary Ola Electric have been part of the young EV startup ecosystem in India.
“Three-six months of extreme short term funding will be a bit depressed because people are figuring out what will work while capital has flown to certain areas which are relatively safer. However, in the long term or by end of this year, mobility startup funding will become closer to normal,” Arpit Agarwal, Principal, Blume Ventures told Financial Express Online. Agarwal had backed Delhi-based Euler Motors that is developing commercial electric vehicles including three-wheeler. The startup had raised Rs 20 crore in May this year.
