$600 million of investments raised in the last two years by electric two-wheeler companies
Initially, a lot of product-led electric two-wheeler (E2W) startups faced difficulty in getting investors on-board due to lack of consumer awareness, policy clarity, and market visibility. However, with the entry of significant two-wheeler brands such as TVS, Bajaj, and Hero in this segment, compounded with the Government’s EV push, the investors are much more confident and have shown an active interest in the EV ecosystem.
In the last two years, more than $600 million of investments have been raised by E2W companies in India. These investments helped manufacturers not only with high upfront capital required in the initial stages of assembly and supply chain setup but also in keeping the cost of E2W low while boosting the quality of the products.
Comparing the investments, it can be inferred that the investments are more towards shared services than private vehicles, as cost economics are working well in the shared mobility segment. Among the manufacturers, Ather has raised the maximum funding of more than $110 million, while in the shared mobility space, Vogo and Bounce led from front.
Source: Industry articles, JMK Research
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