How This E-Bike Startup Raced To INR 100 Cr Revenue By Redefining Micromobility

At a time when the Indian EV ecosystem is buzzing with the upcoming EV gigafactory of the country’s electric two-wheeler major Ola Electric and global player Tesla also exploring similar opportunities in the country, Pune-based electric bicycle (e-bike) startup EMotorad is coming up with what it claims to be the world’s largest electric cycle gigafactory in India. 

The startup made the big announcement in May this year. The project will be done in four phases. The first phase, which spans 240K sq. ft and specialises in e-bike components, will house the largest South Asian e-cycle factory outside China. Overall, the startup’s annual production capacity will be 550K units once this gigafactory is up and running.

This proves that the ‘electric future’ is now and it is making deep inroads into the country, even in the micromobility space. After all, it is an e-bike/e-cycle brand that has put the pedal to the metal, an EV category that rarely vrooms its way onto the EV red carpet, unlike the hugely popular e-scooters/e-motorcycles and e-cars. 

A closer look at the market data also validates a robust demand at home and abroad. The e-bike market in India is projected to reach $60.9 Mn by 2029, growing at a CAGR of 17.7% during the 2024-2029 period. Globally, the electric bicycle market is estimated to reach $71.5 Bn by 2030, from $48.7 Bn in 2024, at a CAGR of 6.6%. 

Essentially, these lightweight, plug-in EVs gained increased traction worldwide since the outbreak of the Covid-19 pandemic, as mainstream transportation stayed off the road for a long time. These compact, mainly pedal-assisted e-cycles proved their utility during that period for hassle-free daily commutes, recreational rides/off-road adventures and last-mile deliveries. And the market demand continues to accelerate, given the skyrocketing fuel prices and a cap on carbon-dense emissions. 

Besides, favourable government subsidies, the growing road infrastructure and the rapid expansion of EV-charging networks make for the perfect setting for exponential e-bike growth.      

For e-bike manufacturers like EMotorad, this has resulted in a double advantage – a burgeoning domestic market topped up by the massive opportunity to export e-bike components to the US, the EU, the Middle East and APAC countries where e-biking is rapidly becoming a staple. 

How EMotorad’s E-Cycle Trail Is Leading To Growth

Understandably, EMotorad has not pedalled into prominence overnight. Its founder, Rajib Gangopadhyay, who came from an electronics and communications engineering background, identified early in the day that clean and sustainable micromobility could be a game-changer, shaping the future of transportation. So, he set up Inkodop Technologies (the parent company of EMotorad) in 2016 when India’s EV narrative was still in its infancy and the products were transitional. 

It was not yet decided what the masses would ultimately crave – a lightweight, low-powered casual machine or a robust high-performer offering power, comfort and aesthetics.  

After four years of back and forth on ideation, innovation and strategy, EMotorad finally started its operations in 2020 with three other cofounders on board – Kunal Gupta, Aditya Oza and Sumedh Battewar. They diligently stuck to three core formulas – a deep dive into hardware R&D and smart design based on the founding team’s industry exposure, proprietary technologies and doubling down on expansion off the back of timely funding. Their efforts soon paid dividends and the EV startup’s journey from zero to one took just three years.

Between August 2020 and March 2021, EMotorad clocked a little over INR 3 Cr in operating revenue, which jumped 20X to INR 60 Cr in FY22 (April 2021-March 2022). In FY23, the startup’s top line crossed the INR 100 Cr mark, with operating revenue at around INR 128 Cr, registering a 112% surge YoY. It claims to have clocked around INR 144 Cr in revenue in FY24, but this cannot be immediately verified as the company’s audited FY24 results are not yet available in the public domain.

Although the startup’s top line soared in sync with its growth, its rising expenses subsequently dampened its bottom line. As against a profit of INR 3 Lakh in the first year of operation, it incurred net losses of INR 2.1 Cr and INR 9.7 Cr in FY22 and FY23, respectively. It did not share its bottom line figure for FY24 but eyes revenues of INR 350 Cr in the current fiscal year. It expects a profit at the EBITDA level by July 2025 (Q2 FY26). 

The fact that the startup is still in the red does not worry industry insiders too much, as its current growth drive is likely putting a squeeze on margins. Although e-bike companies raising too much money too early in the game often tend to be complacent about supply chain, inventories and market demand, EMotorad is in a class of its own.

The startup is a seasoned player with an evolving product line for kids, regular commuters (people in the INR 20-60K monthly income bracket) and high-end users looking for more torque, range and comfort for recreation (more on this later). 

Unlike many brands that assemble parts from original equipment manufacturers (OEMs), EMotorad now develops its key components in-house. It is also on good payment terms with suppliers, which is essential for rapid growth with less capital. With better control over the supply chain and manufacturing, it claims to have produced more than 97K bicycles in FY24 and aims to roll out 3x of that number from its new gigafactory in FY25.  

But the topping on the cake is the EV player’s sound B2B business in around 30 countries, with the US accounting for the biggest revenue chunk. So far, the B2B segment has been the highest grosser for the EV player, with 70% of its revenue coming from local and global B2B partnerships in FY24. Only 30% of its business was generated from the B2C segment in the last fiscal year.

As the founders constantly review markets, improve processes and plan ahead, Emotorad has gained firm control over production, quality, inventory and cash management, all of which are critical elements to ensuring a healthy cash flow.

The consumer-facing part of the business (B2C) has to pick up, though, but Gangopadhyay has an explanation. “When we started, we realised it would take some time to penetrate the Indian market and ensure footfall because it was a young industry. The commuting segment, the categories and the products were all very new. Then we thought, why don’t we start by catering to big enterprises and medium-sized companies already in the electric bicycle segment? That’s why B2B has been in focus all these years,” he said. 

“We cater to seven of the top 10 global OEMs in the electric bike space. We do white labelling for several U.S. and EU players and develop e-bikes for ISRO and DRDO for commuting purposes,” the founder added.

The startup’s B2C business is on a growth trajectory, though. Beyond India, its branded EVs are now sold in nine other countries, including Japan, the UAE, Spain, Australia and more. While India remains the largest revenue driver in the consumer segment, the founding team projects that revenue from its B2B and B2C operations will be nearly equal from the current fiscal year.

Advantage EMotorad In Refining The Ride

In spite of their utility and convenience, e-bikes have long been overshadowed by E2Ws, E4Ws or even electric three-wheelers, used for commercial transportation. This trend is essentially driven by consumer reliance on more conventional modes of transportation (people are more used to cars and two-wheelers irrespective of fuel sources). The high price point also hinders mass adoption among low-income users who opt for manual machines for daily commutes.

When the idea of e-bike manufacturing was taking shape, Gangopadhyay found the outlook particularly bleak, especially in India, where the EV industry was in its nascency and few would spend thousands on battery-powered bicycles. To gain a better understanding of the market and the innovations in this niche, he finally visited China, the global leader in bicycle manufacturing and EV production.  

He was somewhat disappointed. China mostly offered conversion kits at the time, allowing users to retrofit their traditional bikes with necessary components such as battery, motor, charger, display and throttle. 

On the other hand, the founder required a full-fledged manufacturing solution rather than a makeshift one from the home-brew e-bike era. By that time, he had recognised the potential of fully integrated e-bikes, as they offered a unique combination of higher speed (compared to conventional bikes), minimal reliance on high-end charging infrastructure and ease of use across diverse demographics.

“E-bikes have a distinct advantage. If the battery runs out, you can still pedal. You won’t be stranded midway like you do with other EVs. That is a key factor in ease of commuting,” observed Gangopadhyay.

The startup has strategically split the price points to address varying consumer needs for its target segments. It has introduced two major categories – the X Factor (economical) and the Desire (premium range). Models under the Desire range climb to INR 43K and higher, while the X Factor variants are priced between INR 25K and INR 43K. 

“The X Factor range has been designed with simple use cases in mind. It makes commuting more affordable, speeds up travel by allowing riders to navigate traffic congestions more easily and eliminates the need for roadside waits and the hassle of parking,” said Kunal Gupta, cofounder and CEO at EMotorad, with extensive industry experience in automotive and mobility. “These practical benefits have driven adoption among the low-to-middle-income segments, where our business has seen significant scale.”

Emotorad sells direct to consumers through its website and makes its products available on ecommerce marketplaces like Amazon and Flipkart. However, it is increasingly tying up with offline dealers and vendors to drive sales and distribution throughout the country. With more than 350 dealerships in India and 12 experience centres, its offline sales currently account for more than 85% of the brand’s total revenue.

EMotorad has always positioned itself as a mass-premium brand, primarily targeting Tier I and Tier II locations across India, and ensured a strong presence in the relatively untapped Indian e-bike market.

Even though the space has legacy competitors like Hero Cycles and a few new-age startups like Gear Head Motors and Ninety One Cycles operating in this niche (even the modern fitness brand Cult.fit has entered the fray), the EV player claims a 65-70% market share. 

The secret sauce of its success? A razor-sharp focus on e-bikes rather than diversifying into other related segments like e-scooters or regular cycles, which could have resulted in conflicts of interest.

“We are committed to converting every traditional bike priced above INR 8K into an e-bike,” asserted Gupta.

Key Milestones Marking EMotorad’s Leap From Zero To One 

What is most impressive about EMotorad? Undoubtedly, its four-member founding team with years of experience in the global automotive industry, marketing and distribution helped drive the startup’s rapid growth. 

Sandiip Bhammer, founder and co-managing partner of Green Frontier Capital (GFC), an early investor in the startup told Inc42 that when China’s dominance in e-bike exports to the West began to wane, EMotorad was in an advantageous position to step in and cater to the Global North, thanks to the founder’s (Rajib Gangopadhyay) exposure to Chinese e-cycle companies at their prime.

Aware of the opportunity the new player presented, GFC made an early investment in EMotorad in 2022 when the startup raised INR 24 Cr in pre-Series A. The round also saw participation from LetsVenture and Ivy Growth Associates. Since then, EMotorad has expanded its investor base, bringing on board the Panthera Group, xto10x, and, most recently, Indian cricket icon Mahendra Singh Dhoni. 

So far, the startup has secured $23.2 Mn (more than INR 190 Cr) to advance its product development, team expansion, global market positioning and in-house manufacturing capabilities.

According to Gangopadhyay, EMotorad is the first company outside of China to develop in-house all five critical components of e-bikes – battery, motor, charger, display and the entire bike. In the process, the startup claims to have achieved more than 70% domestic value addition.

“An e-bike comprises anywhere between 54 to 62 components. Until 2022, we imported quite a few of these parts. But now, most are produced in-house, with some sub-components being developed by contract manufacturers,” said Gangopadhyay.

But the feather in its cap is the pune-based gigafactory that will bolster its manufacturing capabilities and increase production to meet the rising demand at home and abroad. As the new hub becomes operational in September, the company’s two existing units will focus on battery manufacturing and motor sub-assembly.

At a time when India’s EV and consumer electronics ecosystems are striving to improve domestic value addition, and the government is pushing OEMs to scale up domestic component development under its Make In India initiative, EMotorad’s commitment to in-house manufacturing is definitely worth mentioning.

What’s The Next For EMotorad

With the launch of its gigafactory, the next 18-20 months will be critical for EMotorad as it wants to emerge as a $100 Mn+ enterprise during that timeframe. The ambitious goal stems from the sharp growth projected across its B2C operations. Although it remains tight-lipped about specifics, the EV player has confirmed ongoing discussions with major quick commerce companies in India to deploy its e-cycles for last-mile delivery. This move can significantly bolster its B2C business. In addition, it is poised to announce significant developments on the B2B front to drive growth further. 

Contrary to its earlier strategy of focusing solely on e-bikes, EMotorad may introduce new products in the coming months, which may redefine how two-wheeler mobility is perceived in the country.

By the end of September, the startup is also expected to launch an app (currently undergoing pilots) that will turn e-bikes into smart bikes or connected devices like e-scooters, measuring the distance covered and providing a host of value-added features. It is developing the required software in-house. 

As the burgeoning EV market in India is dominated by e-scooters, EMotorad faces a critical challenge. Will the domestic market see a lift-off and steer a mobility transformation powered by e-bikes? Or will the global market opportunity continue to drive the e-bike startup’s next leg of growth? The founding team of EMotorads is optimistic about the current pace of change and ready for the myriad business challenges a fast-evolving young industry is likely to pose. 

[Edited by Sanghamitra Mandal]