GIC-Backed Euler Motors’ FY22 Loss Jumps 1.9X To INR 36.3 Cr, Sales Rise 1.5X YoY

Delhi NCR based commercial electric vehicle (EV) manufacturer Euler Motors witnessed a nearly 2X year-on-year (YoY) jump in net loss in the financial year ending March 31, 2022. The three-wheeler EV manufacturer reported a net loss of INR 36.3 Cr in financial year 2021-22 (FY22) as against a loss of INR 19.1 Cr in FY21. 

The GIC-backed EV manufacturer’s bottom line took a hit despite a 58% jump in revenue from operations in FY22. Its sales rose to INR 17.5 Cr in FY22 from INR 11.05 Cr in FY21.

The surge in revenue can be attributed to various companies looking to switch to EVs as part of their environmental commitments and the push by state governments to ecommerce and other delivery companies to adopt EV fleets. ​​The draft aggregator policy of the Delhi government mandates that ecommerce, cab aggregators and food delivery startups convert 100% of their fleets to EVs by April 1, 2030.

Euler Motors’ total income, including other income, rose to INR 19.9 Cr in FY22 from INR 11.23 Cr in FY21. 

Total expenses jumped 1.8X to INR 56.5 Cr in FY22 from INR 30.4 Cr in FY21 as the startup’s cost of materials surged. Due to the rise in demand, Euler Motors’ cost of materials consumed jumped over 200% to INR 11.2 Cr in FY22 from INR 3.7 Cr in FY21. 

Meanwhile, employee benefit expenses rose 116% to INR 12.3 Cr from INR 5.7 Cr in FY21, and accounted for about 22% of the total expenses during the year under review. The startup spent INR 8.8 Cr on ‘security & manpower expenses’ or repair cost of vehicles in FY22, a 28% jump from INR 6.9 Cr in FY21. 

On a unit economics level, Euler Motors spent INR 3.2 to earn every INR 1 of operating revenue. 

Founded by Saurav Kumar in 2018, Euler Motors is focused on the commercial segment. It collaborates with ecommerce players such as BigBasket, Udaan, and Flipkart and helps them turn their fleet into EVs. 

The startup raised $60 Mn from Singapore’s sovereign fund GIC in October last year. The funding round also saw participation from existing investors Blume Ventures, Athera Venture Partners, ADB Ventures, QRG Holdings, along with B2B unicorn marketplace startup Moglix. 

Euler Motors has raised total funding of around $90 Mn till date. Euler Motors competes against the likes of Gayam Auto Motors (GAM), Mahindra, Piaggio, and Kinetic. 

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