Mainstream venture capital (VC) funds have increasingly deployed funds in the electric mobility space even as financing in the wider startup ecosystem has witnessed a slowdown over the past few months.
Lightspeed Venture Partners announced its maiden bet on an electric vehicle (EV) startup by leading a $13 million funding round in Bengaluru-based fast charging startup Exponent Energy on July 17.
In June, battery swapping startup Battery Smart said it had picked up $25 million led by New York-based investment firm Tiger Global, with participation from Blume Ventures and Orios Ventures.
This was Tiger Global’s third investment in the EV sector after having backed Ather Energy in 2016 as well as Ola Electric in March 2019.
VCs have traditionally stayed away from EV companies as they are not scalable like startups building software, fintech or consumer technology platforms.
This is more evident in the vehicle manufacturing business as startups not only compete against well-funded players like Ola Electric and Ather Energy, but also traditional automotive companies.
But that is changing as EV startups are raising more money than ever before.
According to data from startup industry tracker Venture Intelligence, the quantum of investments in EV companies in India has already touched $555 million this year compared to $371 million in 2021.
In comparison, funding in domestic startups dipped 37% in the second quarter of this year to $6.9 billion, as reported on July 5.
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