Indian mobility tech startup EVage raises $28m to enhance Commercial EV revolution
US-based venture capital firm RedBlue Capital has invested $28 million in EVage, the all-electric commercial vehicle OEM in India supplying EV trucks to major delivery fleets such as Amazon India's Delivery Service Partner. This is among the largest seed rounds for any Indian start-up and will allow EVage to complete its production-ready factory outside of Delhi in FY 2022-23 and scale up production.
EVage has developed a platform for industry-ready electric vehicles that exceed the quality of comparable options available in India and other emerging markets at a far lower cost basis, passing on significant total cost of ownership (TCO) savings to its customers.
EVage's design and manufacturing methodologies leverage nearly a decade of proprietary hardware, software and process innovations. EVage will manufacture vehicles in 'Modular Micro Manufacturing' factories with smaller footprints and less capital requirements than traditional automotive OEMs.
EVage's first vehicle, the Model .X (point X), is a one-tonne truck designed for the commercial delivery vehicle market, and is undergoing a seismic shift towards electrification. The Model .X was designed and built in close coordination with early fleet customers including Amazon India's Delivery Service Partner, to which EVage is a supplier.
Prescott Watson, General Partner, RedBlue Capital: ''EVage's vehicle platform and fabrication approach is something totally new and much needed to accelerate electrification in low cost markets. The founders took a completely clean-sheet approach to get a truck that meets the needs of delivery fleets across India at a cost basis that beats internal combustion. The fact that such an innovative product is being used today by major fleet customers makes EVage a clear standout in their field - this is the team that's actually delivering.''
Olaf Sakkers, General Partner, RedBlue Capital: ''India is a market with booming EV demand especially in the commercial vehicle segment, but there is a severe supply shortage. EVage fills this exact gap. We're excited to be partnering with them through our India Green Growth fund.''
Both partners will join the board of EVage.
Inderveer Singh, Founder & CEO, EVage said, "We welcome RedBlue Capital in our mission to supercharge EV adoption in India, with its consequent social, environmental and economic benefits. When we pioneered our highly adaptive and modular multi-vehicle platform in 2014, it was a journey into the unknown. The success of new global OEMs and their impact on electrifying transport in the US & Europe is a testament to what we can do in India and other price-sensitive countries. We're aggressively hiring from the top automotive & aerospace companies in India and globally and are looking for mission-driven people who understand the value of electrifying the world's transportation, especially in emerging markets.''