In its Series C investment round, Euler Motors, an emerging electric three-wheeler company in India, has successfully raised an extra Rs 200 crore. With this, the overall money raised in this round is Rs 570 crore, while the total amount raised throughout all rounds is roughly Rs 770 crore. British International Investment and Blume Ventures, two previous investors, joined the most recent investment, which was spearheaded by Piramal Alternatives India Access Fund. This cash inflow is expected to have a major effect on the growth trajectory of Euler Motors as well as the larger Indian market for electric vehicles (EVs).
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Credits: Zee Business
A Rising Star in Electric Commercial Vehicles
Established by Saurav Kumar in 2018, Euler Motors has established itself as a major participant in the electric commercial vehicle (ECV) industry. The HiLoad EV, the company’s flagship model, is praised for being the most potent electric cargo three-wheeler available in India. It has a 170 kilometer range verified by the Automotive Research Association of India (ARAI), a 688 kg payload capacity, a novel liquid-cooled battery, and fast charging capabilities. Over 45 million kilometers have been covered by Euler’s vehicles in the transportation of commodities, demonstrating their dependability and effectiveness.
Significant Growth and Ambitious Expansion Plans
Euler Motors has grown significantly in the 2024 fiscal year (FY24). The business grew from 5 to 22 cities by selling 3,700 vehicles. The audacious objective is to be present in more than 40 cities by FY25, demonstrating Euler’s dedication to growing its business and satisfying India’s rising demand for electric commercial cars.
The founder and CEO of Euler Motors, Saurav Kumar, said, “Our goal is to establish Euler as India’s No. 1 electric commercial vehicle brand with our powerful products and best-in-class services.” “Over the past three years, we’ve demonstrated impressive growth, gained the confidence of customers, and created a heightened demand for our products.”
Strategic Use of Fresh Capital
The newly raised funds will be strategically used to expand Euler’s market share in India, improve product development, launch new car models, and quicken R&D initiatives. It is anticipated that Euler Motors will gain a double-digit market share and take the lead in India’s commercial EV industry as a result of this calculated financial investment.
“With the support of our investors and this new funding infusion, we’ll be able to achieve our double-digit market share target. We’re prepared to quicken our growth trajectory and spearhead India’s switch to commercial EVs with this momentum, Kumar continued.
Financial Performance: A Tale of Growth and Challenges
With revenue from operations increasing to Rs 61.53 crore from Rs 17.57 crore in FY22, Euler Motors has announced a considerable increase in revenue for the fiscal year ended March 2023. But the company also suffered large losses, which rose to Rs 174.73 crore in FY23 from Rs 36.33 crore the year before, almost five times higher. The company’s quick development and expansion are mostly blamed for these losses due to the significant investments made in facilities and infrastructure.
To control expenses in the face of a difficult financing climate, Euler Motors also let go of 10% of its workforce. The business is confident in its ability to lead the market and thrive in the future, despite these financial obstacles.
Competitive Landscape and Market Potential
Established players in the electric three-wheeler sector, including Altigreen, Mahindra Electric, Piaggio, Kinetic Green, and Tata, pose a challenge to Euler Motors. Nonetheless, Euler has a favorable position in this competitive scene thanks to its robust technology, creative R&D capabilities, and well-thought-out expansion strategies.
The increased government support, rising gasoline prices, and expanding environmental awareness are driving significant growth potential in India’s EV market. The company is positioned for long-term growth and market penetration thanks to Euler Motors’ smart investments and wide range of products.
Investor Confidence and Broader Impact
“We are pleased to participate alongside other marquee investors in furthering Euler Motors’ leadership position,” said Kalpesh Kikani, CEO of Piramal Alternatives, expressing confidence in the company’s development potential. We are still excited about the broader EV category as well as Euler Motors’ competitive stance due to its robust R&D and technological capabilities.
The investment’s wider effects were highlighted by British International Investment’s Managing Director and Head of Technology and Telecoms, Abhinav Sinha. “We are happy to maintain our collaboration with Euler Motors in order to propel the development of electric commercial cargo vehicles in India. This industry is very important for creating jobs, cutting emissions, and assisting India in its transition to sustainable energy.
Conclusion
An important turning point for Euler Motors and the Indian market for electric commercial vehicles has been reached with the additional Rs 200 crore raised in the company’s Series C fundraising round. With its aggressive expansion ambitions, wise financial management, and unwavering investor trust, Euler Motors is well-positioned to spearhead the nation’s shift to environmentally friendly and sustainable transportation options, bringing about substantial economic and environmental advantages.
