The 2025 E2W Rumble, Cars24 Acquires CarInfo & More

E2W Market Shifts Gears In 2025

India’s electric two-wheeler (E2W) market hit a speed bump in 2025. Registrations slowed down sharply to 12.8 Lakh units, competition peaked and supply chain bottlenecks limited production. So, what key trends dominated the E2W ecosystem in 2025?

Early-Adopters Plateau: The first wave of the experimental buyer cohort hit saturation in 2025. Industry insiders see the next wave of demand coming from everyday commuters. However, adoption among these new buyers is likely to be slower, as expectations around reliability, range, servicing and resale value are significantly higher.

Subsidy Cuts Lift Prices: The policy environment also shifted sharply last year. Under the new PM E-DRIVE scheme, incentives dropped to INR 5,000 per kWh for FY25 (versus INR 15,000 under the erstwhile FAME-II). Incentives are expected to fall further to INR 2,500 per kWh in FY26. Additionally, the Centre has set a sunset date of March 31 for subsidies on two- and three-wheeler EVs. These cuts sent prices soaring, pushing OEMs to absorb higher costs or fast-track localisation to defend margins.

Bajaj, TVS Take Command: Last year also saw legacy OEMs seize control of the market. Bajaj Auto and TVS Motor, which held single-digit market share in 2022, together captured 52.1% in 2025. Bajaj’s registrations jumped 81% YoY to 3.48 Lakh units, while TVS rose 46% YoY to 3.19 Lakh units on the back of their established dealer and service networks.

Ola Electric Slides: The EV giant’s market share collapsed from 35.5% in 2024 to just over 15% in 2025. Registrations plummeted 51% YoY amid customer complaints about vehicles and after-sales service. Meanwhile, rival Ather Energy overtook Ola Electric, with the former’s registrations zooming to 2 Lakh units.

As we step into the new year, will legacy giants sustain their dominance, or will startups make a comeback? Let’s find out… 

From The Editor’s Desk

🎯 Cars24 Acquires CarInfo 

• The used car marketplace has acquired the vehicle information and management platform CarInfo for an undisclosed amount. CarInfo will continue to operate as a standalone app with its own team under the Cars24 umbrella.
• This marks Cars24’s second acquisition in under a year, when it bought automotive community platform Team-BHP in April 2025. With this, the startup is sharpening its focus ahead of a potential public listing within 12-18 months.
• Founded in 2015, Cars24 claims to have sold over 2 Lakh cars in FY24 and clocked a revenue of INR 6,917 Cr during the fiscal. However, net loss widened to INR 498 Cr due to continued investment in technology, data, and customer experience.

💄 Nykaa’s Q3 Preview

• The beauty ecommerce giant expects to report net revenue growth in the upper-twenties for Q3 FY26 on the back of strong performance of the core platform business, new brand additions and continued customer acquisition.
• Driven by the flagship Pink Friday Sale, the company expects Q3 to become its “largest quarter to date in terms of absolute scale” for its beauty vertical. 
• For context, Nykaa reported a 25% YoY jump in revenue to INR 2,346 Cr in Q2 FY26, the 12th consecutive quarter in which mid-twenties growth was reported. Meanwhile, its consolidated GMV grew 30% QoQ to INR 4,744 in the previous quarter.

💰 Deeptech Enters Top Sector Ladder In 2025

• Even as cumulative funding numbers declined YoY in 2025, it was a watershed year for the Indian deeptech ecosystem. The sector clocked 87 funding deals in 2025, becoming the third most active sector with $500 Mn.
• Fintech startups continued to dominate funding trends in 2025 as well, raising $2.5 Bn across 120 deals. Ecommerce, too, remained highly active and lapped up 206 deals worth $1.7 Bn last year.
• Apart from fintech and deeptech, sectors like cleantech, AI, and consumer services managed to rise and gain investors’ traction last year.

✈️ LAT Aerospace Takes Off

• The Deepinder Goyal-backed aviation startup conducted its maiden test flight of ‘Lat One v0.1’, achieving ultra-short take-off and landing before crashing due to structural defects. Goyal noted the crash was anticipated, adding that v0.2 is now in development.
• LAT Aerospace aims to build low-cost, 24-seater aircraft for short-distance travel, eliminating airport hassles. 
• The deeptech startup raised $20 Mn last year as part of a larger $50 Mn funding commitment. Goyal has personally committed $25 Mn (infused $10 Mn so far) and the rest from other investors for this ambitious long-term research project. 

💸 iD Fresh Bags Big Bucks

• The ready-to-cook D2C brand has announced a ‘strategic’ investment from Apax Partners for a significant minority stake. Reports peg the deal at INR 1,300 Cr for a 25% stake, valuing the company at a nifty INR 4,500 Cr.
• Founded in 2005, iD Fresh sells kitchen staples like idli and dosa batter, frozen flatbreads, pancakes and coffee mixes. The fundraise comes close on the heels of iD Fresh turning profitable only in FY24 after nearly two decades of operations. 
• The deal will also see Apax acquire stakes from existing backers, signalling a strategic reset of the company’s cap table ahead of iD Fresh’s planned FY27 IPO.

Inc42 Markets

Inc42 Startup Spotlight

Can First Coffee Disrupt India’s Café Culture?

India’s coffee culture is transforming. Urban consumers are increasingly moving towards grab-and-go models, forcing premium coffee brands to rethink how they deliver value. First Coffee operates at the centre of this shift.

Selling Coffee, Fast: Founded in 2023, the startup operates a coffee chain that focusses on fast service and standard quality, avoiding the cost-heavy trappings of premium ambience. Its target customer is the daily coffee drinker, who wants speciality-grade caffeine without paying for real estate, décor or downtime.

Bridging The Gap: First Coffee bridges the gap between boutique coffee estates and mass-market QSRs by tightly controlling how coffee is sourced, prepared and served. It also operates tech-enabled stores equipped with Eversys machines to standardise taste and output. This operational discipline enables consistent, high-quality beverages across locations, a feat that smaller artisanal cafés often struggle to ensure as they expand.

Scaling The QSR Model: In 2025, First Coffee added 15 new outlets across Delhi NCR, Chandigarh and Punjab, while recording 9% month-on-month revenue growth and 10% MoM user growth. Last year, the coffee chain closed a pre-Series A round to fund expansion and deepen customer engagement. But, can First Coffee redefine India’s premium coffee segment with its grab-and-go model?

Infographic Of The Day

Bengaluru tops the agritech funding charts with $1 Bn raised so far. Delhi follows closely with $891 Mn, while Chennai ranks third at $423 Mn. Here’s how the numbers stack up.