Advance Mobility Bags $3 Mn From India Accelerator, Finvolve

Advance Mobility has raised $3 Mn (about INR 25.2 Cr) in an undisclosed funding round  from a clutch of investors, including Growthcap Ventures, India Accelerator and Finvolve to scale up operations and expand footprint.

Founded by Mohit Jalan in 2023, Advance Mobility is a fleet startup operating mainly on the Uber platform. The startup claims to be focused on sustainable mobility solutions and have a 100% CNG fleet of vehicles.

Advance Mobility claims it is focussed on addressing the challenges faced by market players, customers, and drivers in the mobility industry. 

“With changing dynamics, mobility as a solution is emerging as a massive opportunity and Advance Mobility is fully committed to continue expanding in this direction,” said Jalan in a statement. 

In February this year, the startup announced raising $2 Mn in a funding round from Finvolve and India Accelerator.

Notably, Indian mobility space is going through rapid transformation, with a focus on sustainable solutions. The electric vehicle (EV) sector has emerged as the key beneficiary of this transformation.

Recently Yulu, which has a fleet of over 40,000 electric vehicles, announced its plan to deploy one lakh EVs by 2025. To fuel this expansion, it will raise $100 Mn (around INR 839.6 Cr) in its Series C funding round over the next year.

Meanwhile, electric two-wheeler registrations grew marginally by 1% to 88,156 units in September from 87,257 units in the preceding month. On a YoY basis, registrations rose over 37% last month.

The sales of two-wheeler EVs underwent significant volatility this year amid the government lowering the demand subsidy under the FAME scheme.

While the industry was waiting for the third iteration of the Centre’s FAME scheme, the cabinet approved a new scheme in September—the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’.

The new scheme has an initial outlay of INR 10,900 Cr for a period of two years to support EV adoption. The scheme aims to support 24.79 Lakh electric two-wheelers (E2Ws), along with other vehicle categories. 

The Centre’s previous subsidy scheme FAME-II aimed to support 10 Lakh two-wheeler EVs.