Commercial EV maker Euler Motors secures US $20 million in debt financing

Delhi-based electric vehicle maker Euler Motors has secured up to US $20 million in debt financing from Zurich-based responsAbility Investments AG.

Euler Motors is an electric vehicle manufacturing startup that offers mobility solutions like commercial three-wheeler EVs, four-wheeler EVs and charging networks.

Founded in 2018 by Saurav Kumar, the company launched its first cargo three-wheeler model, HiLoad EV in 2021 with a payload capacity of 688 kg and a driving range of 170 km. The company is present in more than 25 cities across India.

The EV company vehicles are primarily used by e-commerce, online grocery, supply chain and logistics companies which traditionally have had high last-mile costs.

In May 2024, Euler Motors raised an additional Rs 200 crore ($23 million) in its Series C funding round led by British International Investment, Blume Ventures, and a new investor, Piramal Alternatives India Access Fund.

A few months later in September, the company launched its first four-wheel commercial vehicle under the name ‘StormEV’. The 4-wheeler EV has two variants and both come with a 1250 Kg payload capacity. 

The company’s manufacturing and R&D facility is located at Palwal in Haryana, which has been set up with an investment of Rs 100 crore with an annual capacity to produce 36,000 vehicles. 

The fresh capital infusion will be used to ramp up distribution networks, manufacturing capacity and research and development capabilities.

Electric two-wheelers and electric three-wheelers dominate India’s electric vehicle market. In the financial year 2024 (April 2023 to March 2024), the total electric three-wheeler production was 632,780, making India the world’s largest market in this segment. 

Given India’s problems with air pollution and fossil-fuel dependencies, the 3-W and 4-W electric commercial vehicles are essential to decarbonised last-mile connectivity and intra-city transportation. 

Even though most of these electric 3-wheeler vehicles are used for passenger transportation as e-rickshaws, the market for commercial transport is also high, where Euler Motors will play a big role.

Zurich-based responsAbility Investment is a global leader in impact asset management specialising in private market investments and it has also participated in $20 million debt financing in Pune-based climate-tech solution company, Ecozen. 

Euler Motor was on the annual list of Change Started 11 Green Startups of the Year 2022.