EMotorad in India is very high with $20M investment for global e-bike push

EMotorad, an Indian startup that manufactures electric bikes, has raised $20 million in a Series B round as it aims to break its dominance in the Chinese market and expand its presence in global markets.

The three-year-old startup has raised more than $22.5 million in total funding, with Singapore’s Panthera Growth Partners leading the latest round, with participation from Alteria Capital, xto10x Technologies, and Green Frontier Capital – the current investor in the startup. In addition, the new round of funding includes a loan of $2.5 million.

Demand for e-bikes is growing in markets outside of China and India as people seek to reduce their reliance on fossil fuels, ease traffic congestion on roads and seek alternative transportation options without will require rigorous physical activity on their daily commute. In 2021, the World Bank foretold (PDF) that as many as 300 million e-bikes will circulate in cities around the world by 2023. However, despite the growing global demand, e-bike supplies are highly dependent on manufacturers of China. EMotorad is trying to reverse this trend by establishing its manufacturing operations in India.

“Almost 99% of the world buys e-bikes from China, and that’s what we want to change. It’s a $40 billion industry internationally. And we’re trying to make a dent in it,” Kunal Gupta, co- founder and CEO of EMotorad, said in an interview.

Gupta founded the startup with Rajib Gangopadhyay, Aditya Oza and Sumedh Battewar in 2020 after spending some time in the mobility industry and spending the early years in the two-wheeler rental space. The Pune-based startup started its journey in the Indian market and expanded its presence to global markets in 2021. The startup exports its e-bikes to more than 18 countries through white -label and sell own branded models. EMotorad has a brand presence in five countries, including the US, Europe, Australia, Japan, and some Middle East markets.

EMotorad currently has a portfolio of 14 e-bike models, with 7 to 8 available in India and the rest for global markets. The lineup is priced between $600 to $1,200 in the US and 600 to 1,500 euros in Europe.

Gupta told TechCrunch that quality, technology and after-sales service are some of the USPs of EMotorad bikes.

“You can’t always compete with your price. But we have a significant increase in product quality,” said the co-founder. for, of course, it is in an outsourced capacity.”

The startup has a 50-member tech center in Bengaluru that helps develop proprietary technology, he added.

EMotorad promises to resolve any issues within 48 hours of receiving user complaints. The bikes have a display that shows an error code to indicate any problems with the motor components or battery. This helps users to easily identify and report issues to the manufacturer for quick resolution.

The startup assembles batteries, motors, and other components at its facility in Pune, which can produce up to 90,000 bikes per year. The company is building a new 150,000-square-foot facility — expected to be ready in the next three months — with an “in-house smart drive train” to develop all major components, from batteries and motor to native displays and chargers. It has the capacity to produce 400,000 units per year, said Gupta.

In addition to its own facility, the startup works with several partners across India to fulfill local needs. Although the country, the world’s largest two-wheeler market, does not have a significant e-bike commuter base at the moment, EMotorad believes it is developing.

“India’s movement of electric bikes is growing exponentially. There is a positive uptick there,” Gupta said.

EMotorad has a presence in 200 stores across the country and is targeting to expand it to 800 stores in the next 18 months.

Last year, the startup sold 40,000 units worldwide, of which 10,000 were sold in India alone. In total, its sales to date have been 80,000 units, generating nearly $36 million in revenue.

“This year, we have seen a significant increase of almost 400% from last year in our domestic business,” said Gupta.

The startup said it generated nearly $2 million in revenue from India last year and aims to grow to about $7.8 million this year.

Globally, EMotorad is looking to compete with the likes of Rad Power, Lectric and Cowboy by strengthening its presence in the US, Europe and Australia. It aims to expand its global sales to 100,000 by fiscal year 2025.

“We firmly believe that the market is big enough for many players to fit in… Fortunately, in our favor, what happened is that all the Chinese brands that existed until last year disappeared in business because of all the legal implications that come with it. companies from international businesses especially from Europe and the US,” said Gupta.

The startup, with a total of 160 people worldwide, has a business led by distribution in the US, selling its products through distributors. Similarly, Australia, Japan and the UAE are franchisee markets for EMotorad. However, it has its own presence in Europe, including a warehouse and a small assembly facility located in Spain. It looks to expand its consumer business in Europe by using new fundraising.

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