Clean Motion Secures $1 Mn From Finvolve, India Accelerator

Clean Motion Secures $1 Mn From Finvolve, India Accelerator

The Indian arm of Swedish electric vehicle (EV) maker Clean Motion has raised $1 million in seed funding from India Accelerator-backed micro-enterprise firm Finvolve.

In a statement, Clean Mobility Solution India representative Deb Mukherji said the company’s India arm also plans to raise a pre-series round of $3 million to $5 million early next year. The company will use the fresh income to expand its operations and increase its team in the country.

Part of the capital will also be allocated to set up its own manufacturing unit in Pune to manufacture its flagship three-wheeler called the Zbee. The money will also be used to build electric vehicle charging infrastructure in India.

The agreement includes an initial investment of SEK 6.8 million and a licensing agreement for manufacturing and sales in India. The agreement was formally signed today at the Swedish Embassy in New Delhi.

Sofia Haby, CEO of Clean Motion, “Manufacturing Zbee under a license agreement in India aligns perfectly with our global expansion strategy. We are leading the way for the future of the automotive industry, and Zbee, the most innovative three-wheeler on the Indian market, is no exception. We view this as an essential part of our comprehensive offering.”

The new Zbee factory will be located in Pune and will commence series production in the fall of 2024. Capacity is expected to ramp up quickly, with the ambition to produce 1,000 vehicles per month within three years. This expansion meets both the Indian government’s electric vehicle ambitions and the market’s need for emission reductions.

“The clean and lightweight design developed by Clean Motion not only contributes to innovative and more profitable electric vehicles but also sets the standard for how electric vehicles should be built to match the required transition pace,” added Sofia Haby.