Euler Motors Raises INR 200 Cr In Extended Series C Round To Expand Market Presence

Commercial three-wheeler EV manufacturer Euler Motors has concluded its Series C funding round, raising an additional INR 200 Cr (around $24 Mn) from existing investors Blume Venture, British International Investment and new investor Piramal Alternatives India Access Fund.

In November last year, the startup raised INR 120 Cr (about $14.4 Mn) from British International Investment (BII) and Green Frontier Capital as part of the Series C round. Prior to that, in October 2022, Euler Motors had raised $60 Mn in the round led by Singapore’s sovereign fund GIC. 

In a statement on Wednesday (May 29), the startup said that it overall raised INR 570 Cr in total from its investors in the Series C funding round.

Euler Motors plans to utilise the fresh funds to scale its pan-India presence and servicing infrastructure and establish a presence in over 40 cities by FY25. Additionally, the funds will also fuel the startup’s strategic initiatives aimed at driving product development, bringing new variants, enhancing technological capabilities, and accelerating R&D efforts.

Founded in 2018 by Saurav Kumar, Euler Motors is an automotive original equipment manufacturer (OEM) focussed on commercial electric vehicles. Its flagship electric cargo three-wheeler, HiLoad EV comes with a 170 km ARAI-certified range, a payload capacity of 688 kg, along with a proprietary liquid-cooled battery, and an inbuilt fast charging feature.

In FY24, it claimed to have sold 3,700 vehicles and expanded its presence to 22 cities. Overall, Euler Motors has raised INR 770 Cr in total so far across multiple funding rounds.

“Over the past three years, we’ve demonstrated impressive growth, gained the confidence of customers, and created a heightened demand for our products,” said founder and CEO Kumar. “This fresh capital injection, coupled with the trust of our investors, will propel us towards our goal of double-digit market share.” 

Meanwhile, it is important to note that Euler Motors laid off 10% of its workforce in a restructuring effort last year amid its ongoing fundraising. The startup’s net loss had doubled to INR 36.3 Cr in FY22.

Following the layoffs, Euler Motors said that the aim behind the restructuring was to “better deliver to customers” as well as to investors’ expectations of “greater efficiency in the context of changing global circumstances”.

The startup competes with the likes of Piaggio, Mahindra, and Altigreen Propulsion Labs. 

Following the conclusion of Series C funding rounds, Abhinav Sinha, MD and head of technology and telecoms at BII, said, “This sector of commercial cargo transportation carries considerable significance not only in terms of job creation but also in terms of reducing emissions and supporting India’s clean energy transition.”

As per Vahan data, electric three-wheeler registrations in India jumped to 5.8 Lakh vehicles in 2023 from 2.5 Lakh in the previous year. The growth is driven by factors including the increasing adoption of EVs by ecommerce and related companies for last-mile delivery as well as the government’s policy boost.