NEW DELHI :
Electric vehicle maker EVage has raised $28 million in its seed funding round from US-based venture capital firm RedBlue Capital.
The all-electric commercial vehicle original equipment manufacturer (OEM) in India supplies EV trucks to major delivery fleets, including Amazon India’s Delivery Service Partner, said a company statement.
With the latest fundraise, the startup plans to scale up its production.
“This is among the largest seed rounds for any Indian start-up and will allow EVage to complete its production-ready factory outside of Delhi in FY 2022-23 and scale up production,” it said.
Inderveer Singh, Founder & CEO, EVage said that the company’s focus is to create a robust manufacturing setup and fulfil more and more customer orders. “It’s sort of a growth capital for us in the sense that we want to produce as many vehicles as we want to with this money,” he said.
EVage’s design and manufacturing methodologies leverage nearly a decade of proprietary hardware, software and process innovations, according to the company. Further, the company will manufacture vehicles in ‘Modular Micro Manufacturing’ factories with smaller footprints and fewer capital requirements than traditional automotive OEMs.
Olaf Sakkers, General Partner at RedBlue Capital said: “India is a market with booming EV demand especially in the commercial vehicle segment, but there is a severe supply shortage. EVage fills this exact gap. We’re excited to be partnering with them through our India Green Growth fund.”
Olaf Sakkers and Prescott Watson, General Partner at RedBlue Capital would join the board of EVage.
Singh said: “When we pioneered our highly adaptive and modular multi-vehicle platform in 2014, it was a journey into the unknown. The success of new global OEMs and their impact on electrifying transport in the US & Europe is a testament to what we can do in India and other price-sensitive countries.”
India’s EV industry has witnessed a rapid growth of late with policy support from the Centre and several state governments. Apart from the growing number of EV startups, nearly all major automobile makers are giving a specific focus on EVs. Further, the soaring petrol and diesel prices and incentives on electric vehicles have also boosted the EV demand in the country.
The government is also aiming to transform India into a global hub for electric vehicle manufacturing.
In 2019, the government came up with the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II with an outlay of ₹10,000 crore, under which 86% of the funding is earmarked for consumer incentives and another 10% is kept aside for funding charging infrastructure. According to data from the Ministry of Heavy Industries, a total of over 2.12 lakh electric vehicles have been sold so far under the FAME II scheme.
Furter several states, including Maharashtra and Delhi, have also come up with their own EV policies.
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