EV start-ups set to power India's next unicorn club

In line with the country’s target of reaching net-zero emissions by 2070, Indian climate technology, especially the aspect that relates to start-ups in the electric vehicle (EV) space, has cornered a hefty chunk of investment, despite an ongoing funding slowdown.

- ARYAMAN GUPTA

Given the continued governmental backing and deepening infrastructure, as the ecosystem matures, industry watchers and investors expect EV start-ups to birth India’s next unicorns.

 

At present, there are 970 home-grown EV start-ups operational in the country. But only one has unicorn status. Ola Electric crossed the $1-billion valuation threshold in July 2019, two years after it was founded.

EV start-ups, as many as 18 of which are in the club of soonicorns (soon to be unicorns), have emerged as potential contenders to join the unicorn ranks. These include companies like Ather Energy, Zypp Electric, Blusmart, Yulu, Log9 Materials, Altigreen, and Hero Electric.

Industry experts and venture capitalists Business Standard spoke to say the growth the industry is witnessing and the fund infusion are creating conditions for the next unicorn to come from this sector.

"Electric mobility will give rise to five or six unicorns over the next two or three years," said Anup Jain, managing partner, Orios Venture Partners, an early-stage venture-capital firm.

"The sector is growing at a double and triple-digit compound annual growth rate, in passenger vehicles, public shared mobility, and commercial logistics."

EV start-ups have raised around $3.4 billion since 2021, according to the data from Tracxn, a market intelligence platform.