Riding on the surging global demand for electric bikes, Pune-based Indian startup EMotorad has raised $20 million in a Series B round with an aim to take on the Chinese dominance in the market.
EMotorad raised more than $22.5 million in total funding. Singapore’s Panthera Growth Partners led the latest round, along with Alteria Capital, xto10x Technologies, and Green Frontier Capital, an existing investor in the startup. The funding round includes a debt of $2.5 million.
EMotorad is cofounded by CEO Kunal Gupta, along with Rajib Gangopadhyay, Aditya Oza and Sumedh Battewar in 2020.
“Almost 99 percent of the world procures e-bikes from China, and that is what we want to change. It’s a $40 billion industry internationally. And we are trying to make a dent in that,” Gupta said.
“This capital infusion is a testament to the tireless efforts of our team and the unwavering trust our investors have in our vision. We are excited to leverage this investment to further develop tech enabled electric cycles, expand our reach, and make mobility sustainable and accessible to all.”
The company started with the Indian market and quickly went global in 2021. It currently exports to more than 18 countries through white labeling and its own-branded models and has a presence in the UAE, US, Europe, Australia, Japan, and some other Middle Eastern markets.
EMotorad’s global impact: E-bike expansion
The company currently manufactures 14 e-bike models, nearly half of them for India and others for the rest for global markets. The models are priced between $600 to $1,200 in the US. In India, EMotorad has its presence in 200 stores, and is targeting to expand to 800 stores in the next 18 months.
The World Bank, in a report published in 2021, said as many as 300 million e-bikes will circulate in cities across the globe by 2023. Chinese manufacturers have mostly fueled the growing demand and EMotorad is trying to change the global supply dynamics.
Shilpa Kulkarni, Founder and General Partner at Panthera Growth Partners, said: “EMotorad has a strong innovation-led DNA working towards building sustainable eco-friendly solutions in the mobility space. This aligns with our strategy to back fast-growing differentiated technology-led businesses driving new economy consumption.”
In November last year, EMotorad had said it was investing $3.5 million in expanding its manufacturing capacity in India – $2 million in acquiring land (a new 150,000-square-foot facility) and an additional $1.5 million in setting up manufacturing lines. The facility, expected to be completed over the next 3-4 months, will see the output increase to 400,000 e-cycles per annum from its current 90,000 units.
In an interview to TechCrunch, Gupta said quality and after-sale service were some of the USPs of EMotorad bikes. It promises to resolve most issues within 48 hours, thanks to a display that shows an error code to indicate any problems with the motor or battery components, which leads to proper identification and reporting of issues.
“You can’t always compete on your pricing. But we have a significant uptick in the quality of the product,” Gupta added.
In 2022, EMotorad sold 40,000 units, including 10,000 in India. It has sold nearly 80,000 units till date with revenues of $36 million.
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