EV Startup Magenta Mobility Raises $22 Mn From bp, Morgan Stanley To Increase Fleet Count

Mumbai-based electric mobility startup Magenta Mobility on Wednesday (April 5) announced that it has raised $22 Mn (about INR 180.6 Cr) in its Series A1 funding round from UK-based energy major bp and Morgan Stanley India infrastructure.

Speaking with Inc42, the founder and managing director of Magenta Mobility said that the startup is planning to use the fresh funds to increase its fleet of vehicles, penetrate more cities across the country, and strengthen its overall tech stack.

“This investment is largely for three buckets, the first being scaling up – we have the mandate to have 4,000 vehicles deployed by this financial year. The second is investment into R&D and technology – we have always believed that you cannot copy-paste international solutions into India,” said Lewis, adding that the company was also looking to get into eight new cities, including Pune and Chennai, in FY24.

With around 800 three-wheeler EV cargo vehicles, the EV startup has its presence in seven Indian cities, including Hyderabad, Bengaluru, Delhi-NCR, and Mumbai. 

Magenta Mobility sources its three-wheeler EVs from Piaggio, Altigreen Propulsion Labs, Euler Motors, and Mahindra.

Founded in 2018 as a charging solution provider for EVs by Lewis, Magenta Mobility gradually shifted its focus on providing vehicle fleets for the logistics and last-mile delivery needs of various ecommerce companies. 

Currently, the startup works with companies like Amazon and Flipkart. Magenta Mobility is looking to join hands with more companies in segments such as pharmaceuticals, FMCG, and logistics.

While Magenta Mobility still functions as an EV charging solution provider, with 35 existing charging depots and more being deployed, its charging stations largely cater to the needs of its fleets. 

The startup recently opened its largest EV charging depot in Bengaluru last month. Lewis said that the partnership with Jio bp, which is part of bp’s joint venture with Reliance, will enable Magenta Mobility to deploy charging points at Jio bp’s mobility stations.

“Decarbonising the last mile is increasingly important in India as the ecommerce market is expected to grow fourfold by 2030, which will require the deployment of huge numbers of new vehicles this decade. With the Indian government setting an ambitious 2030 target for the complete transition to EVs for ecommerce, delivery, and transport logistics service providers, Magenta Mobility through its operations will help decarbonise Indian cities while helping meet demand in the fast-growing ecommerce delivery industry,” said Sashi Mukundan, president of bp India and senior vice-president at bp.

Magenta Mobility has grown its revenue 5X year-on-year since its inception, said Lewis. The startup is aiming at an 8X growth in its topline this financial year, with backing from the likes of bp and Morgan Stanley.

Also backed by the likes of HPCL, and JITO Angel Network, the startup has raised around INR 300 Cr so far. In 2021, it raised $15 Mn (INR 120 Cr) in a Series A funding round.

It must be noted that India’s burgeoning EV market is led by two main vehicle categories – two-wheelers and three-wheelers. While two-wheelers are finding adoption, both for personal and last-mile delivery purposes, the growing need for ecommerce and other online deliveries is increasingly leading to more three-wheeler penetration in the market.

Last month, CHARGE+ZONE, Magenta Mobility’s competitor in the charging infrastructure segment, raised $54 Mn in a Series A1 funding round.