The Indian startup ecosystem witnessed another casualty this week as Ohm Daily, formerly Ohm Mobility, is winding down operations after five years, according to co-founder and CEO Nikhil Nair. This EV financing startup, once backed by prominent investors including Antler and Kunal Shah, has become the latest addition to India’s growing list of failed ventures.
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The Rise and Fall of an EV Dream
Founded in 2020, the startup connected banks with EV fleet operators and OEMs for availing loans. What seemed like a perfect business model during India’s EV boom has crumbled under the weight of execution challenges and market realities.
Nikhil Nair’s LinkedIn announcement painted a picture of hard-learned lessons rather than bitter defeat. “While we didn’t crack the model that could scale and sustain, we got a front-row seat to what works, what doesn’t, and why,” he reflected on the company’s journey.
The startup had even rebranded from Ohm Mobility to Ohm Daily in late 2024, attempting to pivot toward broader financial services for daily earners. But this strategic shift couldn’t save the sinking ship.
The Harsh Reality of EV Financing
Ohm Mobility’s collapse highlights a critical challenge in India’s electric vehicle ecosystem: the gap between ambitious vision and sustainable execution. The company positioned itself as a bridge between traditional financial institutions and the emerging EV market, but the five-year old startup failed to scale the business despite numerous pivots in its journey.
The EV financing space seemed ripe for disruption. Fleet operators needed capital, banks were hesitant about new technology risks, and startups like Ohm Mobility promised to solve this puzzle. Yet the reality proved more complex than the pitch deck promised.
Why Promising Startups Keep Failing
Ohm Mobility’s shutdown isn’t an isolated incident—it’s part of a disturbing pattern. Adding on to the string of startup shutdowns, EV financing and leasing startup Ohm Mobility is now winding down its operations. This trend raises uncomfortable questions about India’s startup culture and investor expectations.
The company had notable backing, including support from Antler, a global early-stage venture capital firm, and Kunal Shah, the founder of CRED. Despite this pedigree, the fundamental challenge remained: building a scalable, profitable business model in a rapidly evolving market.
The Hidden Costs of Constant Pivoting
One striking aspect of Ohm Mobility’s story is the multiple pivots it attempted. From EV financing to leasing, then rebranding to Ohm Daily with a focus on daily earners’ financial services—each pivot likely consumed precious resources and team energy.
While pivoting is often celebrated in startup culture as “failing fast” and “adapting quickly,” Ohm Mobility’s experience suggests that constant direction changes can be a symptom of deeper structural problems rather than agile innovation.
What This Means for India’s EV Ecosystem
The collapse of EV-focused startups like Ohm Mobility sends ripple effects through India’s electric vehicle ambitions. If financing remains a bottleneck, the government’s aggressive EV adoption targets become harder to achieve.
Fleet operators still need capital to transition from diesel to electric. Banks remain cautious about lending for technologies they don’t fully understand. The problem Ohm Mobility tried to solve hasn’t disappeared—it just remains unsolved.
Lessons for Future Entrepreneurs
Nair’s reflective tone suggests valuable insights emerged from this failure. The “front-row seat” perspective on what works and what doesn’t could benefit future entrepreneurs tackling similar challenges.
However, these lessons come at a steep cost: investor capital, employee careers, and opportunity costs that could have been deployed elsewhere in the ecosystem.
The Funding Winter’s Casualties
Ohm Mobility’s shutdown occurs during what many describe as a “funding winter” for Indian startups. Easy money is no longer flowing, and investors demand clearer paths to profitability. Companies that might have survived another funding round in 2021’s exuberant market are now forced to shut down.
This market correction, while painful, might ultimately strengthen the ecosystem by eliminating business models that were always more dependent on funding than fundamentals.
Moving Forward: What’s Next?
As EV financing and leasing startup Ohm Mobility has announced that it is winding down operations after five years of trying to build a scalable business model, the broader question remains: who will solve the EV financing puzzle?
The market need hasn’t disappeared. The opportunity remains significant. But Ohm Mobility’s closure serves as a sobering reminder that good intentions, smart founders, and decent funding aren’t always enough to build lasting businesses.
The Indian startup ecosystem continues its painful but necessary maturation process, one shutdown at a time.
