With increasing pollution and global warming, the need to shift to electric vehicles has been more than ever. And this has led to the beginning of many EV startups trying to innovate in the space. One such EV-startup Ather has been doing well a lot lately and has raised the most of the $63.5 Mn funds in 2020, which is more than any other EV startup. Even in 2018 and 2019, the EV-startup industry raised a lot of funds amounting to $123 Mn and $100 Mn respectively.
More about investments in 2020 and the last two years
In 2020 the funds received by the EV industry hasn’t been that great, but considering the pandemic it was okay. According to some reports, the funds received by the EV industry between January and September 2020 was $28.5 million. And recently, Ather promoted by Hero MotoCorp raised $35 million on completion of the funding programme.
In 2018 and 2019 too, the EV industry raised a combined $223 of which Ather was one of the most funded startups. We have also heard that most of the funding rounds of these startups have been completed. So, there might be no more funding news before 2021. Since 2016, from Venture capitalist firms to big automotive companies, many have invested in the EV startup industry and shown promise in the industry.
How are these new EV startups bringing in funds?
Despite the fact that the electric vehicles market is an evergrowing space due to its nature, COVID did had its toll on the industry. Even though the valuations of companies have increased during the pandemic, no of investments have gone down by around 40% in contrast to 2019. But still, it is desirable for investors due to the high returns they are getting as compared to other industries. And as of now, the companies are back in track and are going according to their plans.
Even though the sales in EV vehicles are down due to the pandemic, the investors are showing huge belief. The fact that Ather just received $12 million from Hero MotoCorp in November proves this.
I think the scope of growth is so huge in the EV market that investors are not considering COVID. They might be looking at the long term growth opportunities of the industry. What are your thoughts on the mighty investments received by the EV startups? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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