The Indian electric bike manufacturer EMotorad has secured a $20 million investment in a Series B funding round aimed at disrupting the Chinese market and expanding its presence in global markets.
Global Demand for Electric Bikes is Growing
The demand for electric bikes is increasing in markets outside of China and India as people strive to reduce their reliance on fossil fuels, alleviate traffic congestion on roads, and find alternative transportation options that do not require intense physical activity throughout their daily commute. In 2021, the World Bank (PDF) predicted that up to 300 million electric bikes would be in circulation in cities worldwide by 2023. With global demand rising, supplies of electric bikes are heavily dependent on Chinese manufacturers. EMotorad is looking to change this trend by establishing its own manufacturing operations in India.
Expanding EMotorad’s Global Presence
Founded three years ago, EMotorad has raised over $22.5 million in total funding, with the latest funding round led by Singapore’s Panthera Growth Partners, alongside participation from Alteria Capital, xto10x Technologies, and Green Frontier Capital – the company’s existing investor. Additionally, the new funding round includes a $2.5 million debt.
EMotorad currently offers a portfolio of 14 models of electric bikes, with 7 to 8 models available in India and the rest for global markets. The price range for the models is between $600 to $1,200 in the US and between €600 to €1,500 in Europe.
Product Quality, Technology, and After-Sales Service
Product quality, technology, and after-sales service are among the strengths of EMotorad’s bikes. Co-founder and CEO Kunal Gupta states in an interview that they cannot always compete on price, but they have significantly improved product quality. The founder adds that batteries and motors cannot become technically smart without a technological software layer as these processes occur externally. The company has a tech center in Bangalore with 50 team members helping develop proprietary technology.
Expanding Business in India and Global Markets
EMotorad is working with multiple partners across India to meet local demand. Although India currently does not have a large base of electric bike riders, EMotorad believes the situation is improving. The company has a presence in 200 stores nationwide and aims to expand to 800 stores in the next 18 months. Last year, 40,000 units were sold worldwide, with 10,000 units in India and total sales reaching 80,000 units so far, generating nearly $36 million in revenue.
Expanding Global Sales
EMotorad aims to compete with companies like Rad Power, Lectric, and Cowboy by enhancing its presence in the US, Europe, and Australia. The company targets to expand its global sales to 100,000 units by the fiscal year 2025. The co-founder and CEO believes the market is large enough to accommodate many players, noting that all Chinese brands that existed until last year are shutting down due to legal repercussions arising from international companies, primarily from Europe and the US.
The company is currently working with multiple partners across India to meet local demand. Although India currently does not have a large base of electric bike riders, EMotorad believes the situation is improving. The company has a presence in 200 stores nationwide and aims to expand to 800 stores in the next 18 months. Last year, 40,000 units were sold worldwide, with 10,000 units in India and total sales reaching 80,000 units so far, generating nearly $36 million in revenue.
EMotorad aims
EMotorad aims to compete with companies like Rad Power, Lectric, and Cowboy by strengthening its presence in the United States, Europe, and Australia. The company aims to expand its global sales to 100,000 units by the fiscal year 2025. The co-founder and CEO believes the market is large enough to accommodate multiple players and notes that all Chinese brands that existed until last year are shutting down their businesses due to the legal repercussions arising from international companies, mainly from Europe and the United States.
Source: https://techcrunch.com/2023/11/26/india-emotorad-funding-series-b-ebike/
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