According to a recent report by market intelligence platform Tracxn, EV start-ups in India raised a total of $1.66 billion in 2022, up 117% from 2021. It went on to say that the sector saw only four $100 million+ investment rounds in 2022, compared to just two in 2021. Late-stage funding in the sector is also expected to increase 124% to $1.02 billion by 2022. Early-stage funding also increased by 160 percent, from $202 million in 2021 to $526 million in 2022. According to the report, the average ticket size of early-stage investments increased by 112% this year.
In terms of EV funding, India ranks fourth after the United States, China, and Sweden.
According to the report, Blume Ventures, Micelio, and GrayCell Ventures are the top seed-stage investors in this space in India, while Tiger Global Management, Sequoia Capital, and Qualcomm Ventures are the largest early-stage investors. GIC, The Rise Fund, and Tekne Capital Management are the top late-stage investors.
Tracxn stated in its Electric Vehicles – India Feed Geo Report that this increase is largely due to an increase in late-stage funding rounds, which accounted for nearly 62 percent of total funding in this space in 2022. The report, which is based on Tracxn’s extensive database, offers insights into India’s electric vehicle (EV) market. In terms of the number of companies, India ranks third after the United States and China.
In 2022, India will have sold one million EVs, with electric 2-wheelers accounting for the vast majority of sales. Favorable government policies, an increasing number of options, and expanding EV infrastructure have all contributed to increased EV adoption this year.
According to the report, the sector saw four $100 million+ investment rounds in 2022, compared to just two in 2021. Furthermore, no new Unicorns have been created, and no IPOs have occurred in this space. Bengaluru has attracted the most investment ($2 billion) in the EV sector, followed by Mumbai ($525 million) and Gurgaon ($274 million).
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