PE Investments in Electrical Vehicles Could Reach $1 Billion in 2022

As consumers see new policy measures and the rising price of fossil fuels pushing the adoption of green mobility, experts predict that private equity investments (PE Investments) in India’s electrical vehicle (EV) market could top $1 billion this year.

During the nine months leading up to the end of September, investors invested $904 million through 26 offers, including in battery production, battery swapping, and battery charging stations, according to data from Venture Intelligence. The industry had received finance totaling $1.8 billion from 31 bids as of 2021.

“The total cost of ownership is already favorable for two-wheelers and is almost equal for three-wheelers,” according to Padmanabh Sinha, Government Director, and CIO, non-public fairness, National Investment, and Infrastructure Fund (NIIF).

These deals are being made available across the whole EV ecosystem, including at EV battery manufacturing companies, battery-swapping businesses, and charging facilities. The Narendra Modi-led administration has set a goal for the percentage of electric vehicles in personal, business, and two- and three-wheeled vehicles by 2030.

EV component manufacturer Vecmocon raised $5.2 million last month from investors led by Tiger Global and Blume Ventures.

In addition, Revfin, the platform for individual drivers’ financing, closed a $10 million Series A round, which was led by Green Frontier Capital (GFC), the country’s first venture capital firm that specialises in funding projects related to climate change.

Exponent Energy received its first investment within the residential EV market when it raised $13 million in a Series A fundraising round led by Lightspeed in August. Exponent Energy, based in Bengaluru, intends to utilise the money to grow up their e-pump community to 100 location points in each city, starting with Bengaluru. The company is supported by investors in venture capital, including YourNest VC, 3one4 Capital, and AdvantEdge VC.