Electric Tractor Startup Moonrider Bags $2.2 Mn Funding

Electric Tractor Startup Moonrider Bags $2.2 Mn From Micelio Fund, Others

SUMMARY

Moonrider has developed electric tractors that maintain price parity with diesel variants while reducing operational costs by up to 80%, with farmers spending only INR 300 per hour compared to INR 1,000-1,500 for diesel tractors

The Bengaluru-based startup has created proprietary battery technology manufactured in-house, helping reduce costs by 40% compared to sourcing from external suppliers

Moonrider's founders bring over 30 years of combined experience from companies like Volvo Group and Ola Electric, with plans to use the fresh funding to strengthen vehicle engineering, software and battery technology capabilities

Bengaluru-based electric tractor startup Moonrider has secured $2.2 Mn (INR 19 Cr) in a seed funding round co-led by AdvantEdge Founders and Micelio Fund, along with participation from angel investors.

The startup plans to l deploy the fresh capital to strengthen its capabilities in vehicle engineering, vehicle software and battery technology.

Founded in 2023 by former Volvo executives Anoop Srikantaswamy and Ravi Kulkarni, Moonrider leverages their combined experience of over 30 years in vehicle engineering and electric vehicle R&D from companies like Volvo Group, Ola Electric and Olectra BYD.

“We have been in the EV segment for more than eight years. We have built two wheelers, three wheelers, buses and trucks, and understand the complete ecosystem,” Kulkarni told Inc42.

The startup has developed proprietary battery technology aimed at reducing costs. “If we take a battery pack from a supplier, they will charge INR 100 with profit margins. By manufacturing in-house, we can do it for INR 60 and transfer the INR 40 benefit to customers,” Kulkarni explained.

Unlike premium EVs that typically cost 1.5-2x their ICE counterparts, Moonrider’s electric tractors maintain price parity with diesel variants. The operational cost benefits are substantial. “For a 75 HP tractor, farmers currently spend between INR 1,000-1,500 per hour on diesel, whereas with our electric tractor, it costs only around INR 300,” Kulkarni added.

Moonrider offers three charging options – normal home charging, AC fast charging and rapid charging that takes 30-60 minutes. Additionally, farmers in many states can leverage free electricity for agricultural use.

The startup has established partnerships with major NBFCs and aggregators in India, securing demand for the next 2-3 years. “Our focus now is to bring the product to market at the earliest and begin deployment,” Kulkarni said.

“Electric tractors are the need of the hour with rising diesel prices and low farmer profitability. Rather than spending on core agriculture, farmers are burdened with operational costs. We expect farm mechanisation to improve significantly in India over the next 3-5 years as operational costs decrease while maintaining price parity with diesel tractors,” Kulkarni said.

Looking ahead, Moonrider aims to expand its presence while continuing to innovate in sustainable farming solutions, focusing on its mission to help farmers “save more, earn more, and produce more.”

This comes at a time when India’s EV sector continues to attract substantial investments across segments. Recently, Oben Electric raised INR 50 Cr in Series A funding for its electric motorcycle business. Earlier in 2024, River raised $40 Mn led by Yamaha Motor Co., and Matter secured $23 Mn in its Series B round.

According to Inc42’s State of Indian Startup Ecosystem Report 2024, the EV sector saw investments worth $1.2 Bn in 2023, with the two-wheeler segment leading adoption.