Investment Landscape: Capitalizing on

TABLE OF the EV revolution

CONTENTS
• Private Equity Investments in EVs
• Deal Type Analysis
• Mean Deal Size Analysis
• VC Round Analysis
• Deal Size Analysis
• Business Model Analysis

04
• Key PE Deals in EVs (2020-2024)
Executive Summary • M&A Activity in EVs

16
• M&A Deal Type Analysis
• Key M&A Deals in EVs (2020-2024)
The Evolution of India’s Mobility
Landscape
Electric Two-Wheelers: Powering the
• India’s Mobility Journey
Transformation
06
• Roadblocks of Traditional Mobility
• The Alternate Fuel Shift • Electric Two-Wheeler Landscape

Electrification Surge: The Rise of

• The Growth of Electric Two-Wheelers
• EV Two-Wheelers' Battery Technology
28
EVs in India
Driving Innovation: Case Studies from
• Key Drivers Accelerating EV Adoption
• Government Initiatives Electric Two-Wheelers Industry

10
• Insights into India's EV Market

32
• Case Study: PURE EV's Journey in Electric Mobility
• India's EV Ecosystem • Case Study: Ather Energy's Journey in Electric Mobility

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 2

Executive Summary

Current State of Play: Innovations Unleashed: Future Roadmap:

The EV Boom Technology Meets Investments & Sustainability
Riding the Growth Curve Opportunity Accelerating Capital Flows
India's EV market is accelerating at a CAGR of Investments are shifting focus to scaling
Battery Breakthrough
76% (FY20-FY24) ventures and strategic M&A consolidations.
Battery costs plummeted by 85% over the past
Market Momentum decade, and next-gen technologies like solid- Government as a Catalyst
state batteries and battery swapping are
EV penetration surged from 1% in FY20 to an Policies like FAME-II and state-level subsidies
redefining range, efficiency, and affordability.
impressive 8% in FY24, signaling a shift are accelerating EV adoption.
toward electric mobility.
Efficiency Reimagined Target 2030
Two-Wheelers Take the Lead Innovations such as regenerative braking
India aims for 30% EV penetration by 2030,
deliver up to 15% range improvement,
Electric two-wheelers dominate the market aligning with its climate goals.
reducing operating costs further.
with 55% share, revolutionizing urban
commutes and last-mile delivery solutions. India’s Net Zero Vision
Homegrown R&D
EVs are playing an important role in India's
Investor Confidence Soars Localized research and development efforts
climate goals of reducing 1 billion tonnes of
are scaling innovation and reducing import
Private equity and venture capital investments CO₂ and achieving Net Zero by 2070.
dependencies.
skyrocketed 12x in value in three years (2020-
2023), with landmark deals such as Ola
Charging Up the Ecosystem
Electric ($389 mn) and Ather Energy ($127
India boasts 25,000+ public charging stations,
mn).
ensuring greater accessibility across urban
centers.

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 4

The Evolution of India’s
Mobility Landscape

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 6

Paving the Roads of Progress: India’s Mobility Journey
From bicycles to high-speed trains and e-mobility, India’s transportation has evolved with rapid urbanization and tech advancements.
It’s a story of speed, scale, and sustainability.

Two-Wheelers Dominate Early Years Public Transport Innovations Electric Vehicle Adoption

Affordable Mobility: Two-wheelers Metro Expansions: Cities like Delhi, Policy Support: Government initiatives like
provided an economical means of Bengaluru, and Pune expanded their metro the FAME scheme accelerated EV adoption.
transport for the masses, leading to their networks, enhancing urban mobility. Market Penetration: By 2024, EVs constitute a
widespread adoption. High-Speed Rail: The Mumbai-Ahmedabad growing segment of the automotive market,
Sales: In 1994, approximately 3 million bullet train project marked a significant step increasing its penetration in total vehicles
two-wheelers were sold annually. towards high-speed rail connectivity. from 1% in FY20 to 8% in FY24.

1990s 2000s 2010s 2010s 2020s

Passenger Cars Emerge Rise of SUVs

Market Expansion: The introduction of Consumer Preference Shift: Improved road infrastructure and
affordable passenger vehicles, made car changing consumer preferences led to surge in SUV popularity.
ownership accessible to a broader population. Market Share: SUVs accounted for a significant portion of the
Sales: By 2010, annual car sales surpassed 2 passenger vehicle market by the late 2010s, increasing its % in
million units. total vehicles from 5% in 2011 to 27% in 2020.

Source: Society of Indian Automobile Manufacturers (SIAM), Statista

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 4

7
Roadblocks of Traditional Mobility: A Catalyst for Change
From skyrocketing fuel costs to alarming health impacts, traditional mobility faces mounting challenges. Tackling these barriers is the
first step toward a cleaner, smarter, and more sustainable transportation landscape.

Traditional vehicles require frequent Over 85% of India’s crude oil is imported,
servicing due to their complex mechanical exposing it to price fluctuations
systems. 87.7%
85.0%
06 01
On average, EV maintenance costs are 80.6%
50-70% lower compared to ICE vehicles. Maintenance Fuel Import
Costs Dependency
FY16 FY20 FY24

Transport sector
40% accounts for about 40% 05 02
of air pollution Traditional ICE vehicles contribute
Noise
Air Pollution significantly to urban noise pollution.
Pollution
90% of that comes from Contribution
EVs, being virtually silent, can help reduce
90% road transport noise levels, creating quieter cities.

Energy Rising Fuel

While petrol or diesel cars convert only Efficiency Retail prices for petrol and diesel have
Costs
17% to 21% of stored energy, EVs can almost doubled in the last 10 years
04 03
convert up to 60% of electrical energy
95.4 95.0 98.0 100.0
from the grid into vehicle movement. 70.0
78.5 73.8 80.4
60.5 64.4
85.4 86.4 89.5 90.0
This efficiency leads to lower operational 67.1 64.3 70.2
58.0

The Need for Cleaner,

costs and reduced energy consumption. 46.1 50.6

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Smarter Mobility Average Petrol Price (₹/litre) Average Diesel Price (₹/litre)

Source: Petroleum Planning & Analysis Cell (PPAC) Ready Reckoners, (International Energy Agency) IEA, Press Information Bureau (PIB), e-Amrit Portal, Bolt Earth

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 8

4
The Alternate Fuel Shift: From Fossil Fuels to Future Fuels
India’s transition to sustainable mobility is driven by clean energy solutions like CNG, LNG, and EVs, shaping a green future.

The Alternate Fuel Shift Assessment of Alternate Fuels

• CNG vehicles have seen a Bio-
Criteria CNG LPG LNG Ethanol Methanol Dimethyl Hydrogen Electric
significant rise from almost 38,000 Diesel Ether
vehicles sold in FY20 to over 4 lakh
vehicles in FY24.
Reduction of CO2
• India achieved 10% ethanol from Base fuel H M H L L L L H M
blending in petrol in 2022, ahead (Gasoline/Diesel)
of its 2025 target, and aims for 20%
blending by 2025.

• LNG is emerging as a viable Reduction in Well-to-

wheel CO2 emission
M L L M H L L M M
alternative for heavy-duty trucks
and long-haul transportation,
offering lower emissions compared
to diesel.
Local Sourcing
Possibility H L L H M H M M M
• India is exploring hydrogen as a
clean fuel alternative, with
initiatives to develop hydrogen fuel
cell technology and infrastructure.
Adaptability in All
M L L M L L L L H
Vehicle Types
• Efforts are being made to produce
biodiesel from non-edible oilseeds
and waste oils, promoting a circular
economy. Replace/Blend Replace Replace Replace Blend Blend Blend Replace Replace Replace

H High M Medium L Low

Source: SIAM Working Paper on Alternate Fuels, Deloitte, Vahan Portal

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 9

4
Electrification Surge:
The Rise of EVs in India

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 10

Powering the Shift: Key Drivers Accelerating EV Adoption
The electric vehicle revolution is gaining momentum, driven by advancements in technology, supportive policies, and a growing
ecosystem. From urban commuters to sustainability-conscious individuals, EVs are shaping the future of personal mobility in India.

Boosted by collaborative efforts Revolutionary advancements in

between governments and private energy efficiency and battery
players technology

• Policy Support: Govt. schemes like • Battery Advancements: EV batteries

FAME-II and PM E-Drive are focused in India have reduced costs by 85%
on accelerated adoption of EVs in over the past 10 years. Local R&D
India. Ecosystem Efficiency initiatives for solid-state and sodium-
• Public-Private Collaboration: MoUs ion batteries could further cut costs.
between private players (e.g., Tata • Energy Efficiency Innovations:
Power, Ather Energy) and states for Regenerative braking systems are
charging infrastructure development. now standard in most e-scooters,
improving range by up to 15%

Expanding access to EVs and Affordability driven by innovation

charging networks across urban and and lower operating costs.
rural areas
Expansion Economic
Feasibility Viability • Cost Savings: The operational cost of
• Charging Infrastructure: India has EVs is as low as ₹1/km compared to
operationalized 25,000+ public charging ₹6-7/km for petrol vehicles.
stations, with key metro cities like Delhi and • Affordability: Subsidies and state-
Mumbai having chargers every 3-5 km. level initiatives (e.g., Zero road tax on
• EV Accessibility in Rural Areas: Affordable EVs) in states like Delhi, Maharashtra,
e-rickshaws and low-cost two-wheelers have and Karnataka further lowers the total
penetrated rural markets with tailored cost of ownership.
solutions for last-mile connectivity.

Source: Invest India, Vahan Portal

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 11

Government Initiatives Accelerating EV Adoption in India
India is propelling its transition to electric mobility through a series of strategic policies and commitments. These initiatives aim to
reduce carbon emissions, enhance energy security, and position India as a leader in sustainable transportation.

India’s Panchamrit (COP 26)* Scheme Key Features Latest Progress

- As of July 2024:
500 GW Non-Fossil Fuel 50% Renewable Energy - Incentives for 7,262 e-buses, 15.5 lakh e- Over 16 lakh EVs supported with
Energy by 2030 Capacity by 2030 FAME-II (2019- 2Ws, and 1.55 lakh e-3Ws. subsidies.
2024) - Support for public/shared transport Nearly 5,000 e-buses deployed.
Reduce 1 Bn Tonnes of 45% Reduction in electrification and charging infrastructure. Around 7,400 charging stations
CO₂ Emissions by 2030 Carbon Intensity of GDP sanctioned.
by 2030
- Promote domestic manufacturing of - 10 GWh capacity awarded under
PLI – Advanced
Net Zero by 2070 Chemistry Cells
advanced battery cells. the scheme.
- Focus on high energy density and Boosting localized battery
(ACC)
storage solutions for EVs. manufacturing to meet EV demand.
EV Penetration Targets by 2030 vs Current
Penetration rates (YTD FY25) - As of March 2024:
- Incentives for EV manufacturing,
• Over ₹14,000 Crore invested.
PLI – Auto & including e-2Ws, e-3Ws, e-4Ws, e-buses,
• Nearly 30,000 jobs created.
30% Private Cars 3% Components and e-trucks.
• Substantial investment proposals
- Strengthen India’s EV supply chain.
received from the industry
Commercial
40% 2%
Cars - Subsidies for 7,432 charging stations via • ₹560 Crore disbursed to OMCs.
Charging
Oil Marketing Companies (OMCs). • 4,853 stations installed.
Infrastructure
- Additional ₹73.5 Crore for upgrading • Focus on highways and urban
(FAME-II)
980 fast-charging stations. areas.
70% Buses 5%

- Comprehensive EV adoption strategy. • 22,100 fast chargers for e-4Ws,

Two-wheelers 6% PM E-DRIVE - Subsidies for e-2Ws, e-3Ws, e- 1,800 for e-buses, and 48,400
Scheme (2024- ambulances, e-trucks, e-buses. for e-2Ws/e-3Ws to be deployed.
80% 2026) - Charging infrastructure and testing • ₹2,000 Crore allocated for public
upgrades. charging infrastructure.
Three-wheelers 56%

Source: NITI Aayog, PIB, Ministry of Heavy Industries

*COP 26 – 26th Conference of the Parties to the United Nations Framework Convention on Climate Change

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 12

Insights into India's EV Market: Growth and Projections
India's automotive sector, contributing 7.1% to the GDP, is steadily transitioning to electric mobility, with EV sales showing CAGR of
76% from FY20 to FY24. Government policies and a target of 30% EV penetration by 2030 are propelling this transformation.

India’s EV sales’ estimated CAGR of 46% underscores its ambition to The sharp increase in sales post-FY21 highlights the impact of govt.
align with global sustainability targets. schemes and state subsidies for EV adoption. Continued focus on
affordability will be key to sustaining this trend.
Total EV Sales (in million units)
16 Electric two-wheelers dominate EV sales, accounting for over 55% in
FY24, driven by affordability, government subsidies, and rising demand
GR in urban logistics.
CA46%

The growth in electric two-wheelers will be driven by electric

motorcycles, which is expected to achieve a CAGR of over 100% for the
1.68
next six years.

FY24 2030E EV Sales Trend (in ‘000 units)

The rise in EV penetration from 1% to 8% is significant, yet the 1,022

2 Wheeler
949
dominance of petrol-powered vehicles (~80%) indicates room for 3 Wheeler
deeper market penetration, especially in rural and tier-2/3 cities. 4 Wheeler (Commercial)
4 Wheeler (Passenger) 728

FY20 EV Penetration FY24 EV Penetration 633 641

CNG, 1.9%
Others, EV, 7.8%
EV, 0.7% 0.4%
403
Others,
Diesel, CNG, 0.3% 253
12.1% 0.2%
143 159
92 184 82
Petrol, Petrol, 27 45 40 10
Diesel, 2 18 3 17
86.7% 80.1% 5 1 19
9.9%
1 FY20 FY21 FY22 FY23 FY24 FY25 (YTD)

Source: Invest India, Vahan Portal

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 13

 Energizing the Future: A Comprehensive View of India's
EV Ecosystem
India's electric vehicle ecosystem is a dynamic interplay of manufacturers, energy providers, and facilitators. This interconnected network
drives innovation and sustainability, setting the stage for a greener mobility revolution.

Electric Vehicle Manufacturing Raw Material & Component

Enablers & Facilitators Energy Solutions Providers
(OEMs) Manufacturers

Only EV Manufacturers

Raw Material Mining

Regulatory Bodies

Energy Providers
Two-Wheelers

OEMs Are Supported By:

Both ICE and EV Manufacturers

Financial Investors
Manufacturing
Three-Wheelers

Charging Infra
Battery Cell

Providers
Software & Tech
Four-Wheelers

EV Financing
Providers
Providers

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 14

Investment Landscape:
Capitalizing on the EV
revolution

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 16

Private Equity Investments in EVs: A Journey of Growth and
Fluctuations
PE investments in EVs showcase remarkable growth over the years, with yearly and quarterly trends reflecting dynamic shifts in
investor focus and market momentum.

Between 2020 and 2023, PE investments in EVs surged Quarterly trends reveal significant changes, such as Q3 2023, which reached $569 mn in
both in volume and value. Deal volumes grew over 2.7x, deal value, a sharp increase compared to $110 mn in Q3 2022, marking a 4.8x rise in
while investment value skyrocketed by more than 12x. value. Similarly, Q1 2022 stood out with $346 mn, a significant leap compared to $11 mn
As of 2024, with 30 deals valued at $627 mn, the market in Q1 2021, showcasing a massive 31x growth in value. By Q3 2024, investments were
shows a healthy continuation of momentum, albeit at a $110 mn across 4 deals, a significant decline from $569 mn and 11 deals in Q3 2023,
slightly moderated pace compared to 2023. reflecting a 80% drop in value and 63% in deal volumes, indicating a cooling off after
peak activity.

Volume
PE Investments - Year-wise Vo lum e PE Investments - Quarter-wise
Value ($ mn)
Value ($ mn) 569
11
34 33 11
30 9 9 9 9 9
27 998 8 8 8 8
346
7
5 6 268
257
675 5
627 4 4
133
12 155
3
110 99 110 94
397 2 249 87 85 74
78 35 50
8 14 21 11

2020 2020 2020 2020

1 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024
2020 2021 2022 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 17

Deal Type Analysis: Evolving Strategies and Shifting Focus
Deal type analysis reveals shifting preferences, with venture capital leading the way and private equity gaining momentum, highlighting
evolving funding strategies in the ecosystem.

Venture capital deals dominated in 2022 and 2023, with volumes Venture capital also led in value, skyrocketing from $68 mn in 2020 to a
peaking at 20 and 16 deals, respectively, reflecting a consistent peak of $812 mn in 2023, marking nearly a 12x growth in three years.
focus on scaling ventures. Angel/Seed investments were highest Angel/Seed funding peaked at $108 mn in 2021 but declined steadily to
in 2021, with 19 deals, but gradually declined to 8 deals in 2024, $12 mn in 2024, signaling a shift away from smaller, early-stage funding.
showing reduced activity in early-stage funding. Private equity Private equity made its entry in 2023 with $175 mn, growing to $249 mn
deals appeared only in 2023, with 2 deals, and increased to 5 in in 2024, highlighting increased focus on mature companies in the EV
2024, indicating growing interest in larger, more mature ecosystem.
investments.

Deal Type Analysis - By Volume Deal Type Analysis - By Value ($ mn)

812
20
19
17 638
16
15
14

363
8 8
7 289
249
5 5
175
2 108
68
0 0 0 37
10 0 0 0 11 14

2020 2021 2022 2023 2024

2020 2021 2022 2023 2024

Angel/Seed Venture Capital Private Equity

Angel/Seed Venture Capital Private Equity

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 18

Mean Deal Size: Rising Averages Across Years and
Investment Types
Average deal sizes in EV investments highlight steady growth across years, with venture capital driving mid-sized deals and private
equity leading high-value transactions.

The average deal size in EV investments grew steadily, with a peak of Angel/Seed deals maintained small average sizes, peaking in 2021
$39.9 mn in 2023, representing a nearly 3.5x increase over four before stabilizing 2024. Venture capital deals consistently grew,
years. However, 2024 reflects a moderate average of $22.4 mn, reaching a high of $54.1 mn in 2023, showcasing robust investor
indicating a potential shift toward smaller deals or more cautious confidence in scaling ventures. Private equity deals debuted strongly in
funding approaches. 2023, and continued momentum into 2024, reflecting large-scale
funding interest in mature companies.

Mean - Deal Size ($ mn) Mean - Deal Sub-Type ($ mn)

39.9 Angel/Seed
87.6
Venture Capital

Private Equity

54.1
25.0 41.2
49.8
22.4
17.2
39.9 24.2

8.7 13.6
6.8 3.4
1.4
2.6 1.8
0.0 0.0 0.0
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 19

VC Analysis: Steady Early-Stage Funding and Rising Bridge
Funding
Venture capital rounds in EV investments highlight steady growth in early-stage funding, while bridge and late-stage rounds gain
momentum, reflecting diverse funding strategies in the ecosystem.

Series A rounds have consistently grown in volume, peaking at 8 deals Bridge rounds dominated in 2023, reaching an impressive $490 mn,
in 2022 and maintaining 6 deals in 2024, reflecting steady early-stage indicating significant interim funding requirements for scaling
funding. Series B activity showed consistent growth until 2023 with 4 companies. Series A funding steadily grew, peaking at $101 mn in 2022
deals, before slightly declining to 2 deals in 2024. Bridge rounds before tapering to $55 mn in 2024, highlighting consistent early-stage
emerged as a key contributor in later years, peaking at 6 deals in 2024, interest. Series B investments saw a dramatic rise to $167 mn in 2022,
signaling a preference for interim funding. Late-stage rounds (Series D maintaining a strong $105 mn in 2024. Late-stage Series E+ rounds
and E+) remained sparse but showed steady activity since 2022, peaked at $177 mn in 2022, showcasing robust funding for scaling
indicating cautious high-value funding. companies, but declined to $86 mn in 2024.

Venture Capital Analysis - By Value ($ mn)

Venture Capital Analysis - By Volume
490
8
Series A Series B Series A Series B

Series C Series D Series C Series D

Series E+ Bridge 6 6 6 Series E+ Bridge

4 4 224

3 167 177
132 124 109
2 222 2 22 2 2 105 102
101 86
89
11 1 1 1 1 60 55
35 43
870 18 16 15
0 0 00 00 0 0 006 0 00 0

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 20

Deal Size Analysis: Strategic Shift Towards Larger
Transactions
Deal size analysis showcases a growing shift toward larger transactions, with high-value deals driving growth while mid-sized deals
($5-$25 mn) maintain steady momentum in the ecosystem.

Smaller deals under $5 mn dominated in volume through most years, In terms of value, mid-sized deals between $5-$25 mn steadily grew,
peaking at 13 deals in 2021, but gradually declining to 8 deals in 2024, jumping from $40 mn in 2020 to $181 mn in 2024, a 4.5x rise.
indicating a shift toward larger deal sizes. Mid-sized deals between $5- High-value deals of $100 mn+ became a dominant driver from 2021
$25 mn maintained steady growth, reaching 13 deals in 2024, onwards, peaking at $601 mn in 2023, contributing significantly to
highlighting consistent investor interest in this range. Larger deals of overall investment growth. Deals in the $50-$100 mn range also gained
$50-$100 mn and $100 mn+ saw increased activity starting in 2022, traction from 2022, reaching $186 mn in 2024, reflecting increased
peaking at 3 deals each in 2023, signaling growing confidence in allocation toward scaling ventures.
higher-value transactions.

Deal Size Analysis - By Volume Deal Size Analysis - By Value ($ mn)

13 13
601

10
9
8 8 8

6
5 260
209 192 177 181 186
3 3 3 3 3 3 3 3 3 124
105 99 105 11596
2 126
1 1 1 4035 57
26 20 9 9
0 0 0 3 0 0 0

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Under $5 mn $5-$25 mn $25-$50 mn $50-$100 mn $100 mn+ Under $5 mn $5-$25 mn $25-$50 mn $50-$100 mn $100 mn+

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 21

Business Model Analysis: B2C Dominates Value as B2B
Matches Volume
EV investment trends reveal a balanced deal volume between B2B and B2C in 2024, yet B2C remains the clear leader in total investment
value over the past five years, signaling sustained consumer-driven momentum.

B2B and B2C models have equally driven investment activity over B2C investments led the charge, contributing $1,649 mn in total, peaking
the last 5 years. B2C peaked in 2022, while B2B showed consistent at $579 mn in 2023, showcasing strong consumer-focused growth. B2B
growth, peaking at 14 deals in 2023 and 2024. Hybrid models investments showed steady progression, reaching $241 mn in 2023 and
combining B2B and B2C saw modest activity, with 9 deals in 2023, totaling $679 mn overall. Hybrid models, while secondary, have grown to
but limited representation in 2024, reflecting a focus on single- contribute a significant $446 mn, with a notable peak of $178 mn in 2023.
model investments.

Business Model - By Volume Business Model - By Value ($ mn)

15
14 14 579
13
11 11 454
10
9 9
8
7
6 275 275
241
203
4 178
3 135 149
2 96 86
67
8 25
3

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

B2B B2C Both B2B B2C Both

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 22

Key PE Deals in Electric Vehicles (2020-2024)
$71 mn $389 mn
Announced in: Aug-24 Announced in: Jul-23
Target: Ather Energy Ltd. Target: Ola Electric Mobility Ltd.
Buyer: National Investment and Buyer: DIG Investment, Tekne Capital
Infrastructure Fund Ltd.,India Japan Fund Management LLC, Temasek Holdings Advisors
India Pvt. Ltd., Tiger Global Management LLC
Venture Capital
$73 mn Venture Capital
Announced in: Mar-23
Target: Mahindra Last Mile Mobility Ltd.
$209 mn
Buyer: International Finance Corp. Announced in: Sep-21
Target: Ola Electric Mobility Ltd.
Private Equity Buyer: SoftBank Vision Fund LP, Temasek
Holdings Pvt. Ltd., Alpha Wave Ventures, DIG
Deal Investment, Edelweiss Private Alternative
Investment Fund, VSS Investco Pvt. Ltd.

$82 mn Value
Venture Capital
Announced in: Aug-22 ($ mn)
Target: Yulu Bikes Pvt. Ltd.
Buyer: Magna International Inc., Bajaj $132 mn
Auto Ltd. Announced in: Jan-22
Target: Ola Electric Mobility Ltd.
Venture Capital Buyer: Alpha Wave Ventures, Nuvama
Private Investments Trust, Alpine
Opportunity Fund, Tekne Capital

$103 mn Management LLC, DIG Investment

Announced in: Feb-23 Venture Capital

Target: TI Clean Mobility Pvt. Ltd.
Buyer: Multiples Private Equity Fund $127 mn
III, Tube Investments of India Ltd., Announced in: Jan-22
State Bank of India $126 mn Target: Ather Energy Ltd.

Private Equity $109 mn Announced in: May-24

Buyer: Hero MotoCorp Ltd., NIIF
Strategic Opportunities Fund, GIC Pvt.
Announced in: Sep-23 Target: TI Clean Mobility Pvt. Ltd. Ltd., Innoven Capital India Fund
Target: Ather Energy Ltd. Buyer: GEF Capital Partners LLC, M
Buyer: Hero MotoCorp Ltd., and G Investment Management Ltd. Venture Capital
GIC Pvt. Ltd.
Private Equity
Source: VCCEdge Venture Capital

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 23

M&A Activity in EVs: Rising Deal Volumes and Strategic
Consolidation
M&A activity in EV investments shows consistent growth, with increasing deal volumes and larger transaction sizes reflecting a focus
on consolidation and strategic expansion.

M&A activity has steadily increased in volume from 2021 to 2024. The mean deal size for M&A transactions grew sharply from $10.3
Transaction values also saw significant growth, climbing from $21 mn mn in 2021 to a peak of $43.1 mn in 2023, reflecting a trend towards
in 2021 to a high of $176 mn in 2022, with 2024 reflecting strong larger transactions. However, 2024 shows a decline of over 50%,
activity at $149 mn, indicating sustained momentum in consolidation suggesting a shift towards moderately sized deals or a broader
efforts. spread of transaction values.

M&A - Year-wise
Mean - Deal Size ($ mn)
176
149 43.1
129
35.2

21.2

21 10.3

3 6 4 7

2021 2022 2023 2024

2021 2022 2023 2024
Volume

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 24

M&A Deal Type Analysis: Domestic Strength & Growing
Inbound Interest
M&A deal types in EV ecosystem highlight domestic M&A dominance in deal activity, while inbound transactions steadily rise, driven
by high-value international interest.

Domestic M&A deals consistently dominated the activity, Inbound M&A deals significantly outpaced domestic deals in terms
highlighting a preference for local consolidation. Inbound deals of value, peaking in 2022 and remaining strong at $106 mn in 2024,
showed gradual growth, with 1 deal each in 2022 and 2023, underlining international investors’ focus on high-value transactions.
increasing to 2 deals in 2024. Domestic deal values fluctuated, with a peak at $29 mn in 2023,
reflecting smaller-scale local transactions.

Deal Type Analysis - By Volume Deal Type Analysis - By Value ($ mn)

4 4 150

3 105.5
100

2 2

1 1
29 28
20
0 6
0

2021 2022 2023 2024 2021 2022 2023 2024

Inbound Domestic Inbound Domestic

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 25

M&A Deal Size Analysis: Steady Mid-Sized Deals Growth
M&A transactions’ deal sizes in the EV ecosystem highlight steady growth in mid-sized transactions, while high-value deals consistently
drive significant investments in recent years.

Deals in the $5-$25 mn range showed consistent growth in last few Mid-sized deals in the $5-$25 mn range dominated total investment,
years, indicating sustained interest in mid-sized transactions. High- growing steadily from 2021 to 2024, reflecting their role in fueling
value deals of $100 mn+ appeared consistently since 2022, with 1 growth-stage companies. Large deals of $100 mn+ led the value
deal each year, reflecting ongoing investor focus on strategic, large- segment, contributing $150 mn in 2022 and maintaining consistent
scale transactions. Smaller deals under $5 mn saw moderate activity, contributions of $100 mn in 2023 and 2024, highlighting strong
peaking at 3 deals in 2022. confidence in strategic investments.

M&A Transactions Deal Size - By Volume M&A Transactions Deal Size - By Value ($ mn)

150
4

3
100 100

2 2

48
1 1 1 1 1 1
29
20 20
6
0 0 0 0 0 1

2021 2022 2023 2024 2021 2022 2023 2024

Under $5 mn $5-$25 mn $100 mn+ Under $5 mn $5-$25 mn $100 mn+

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 26

Key M&A Deals in Electric Vehicles (2020-2024)
$12 mn $150 mn
Announced in: Feb-24
Announced in: May-22
Target: 3EV Industries Pvt. Ltd.
Target: Greaves Electric Mobility Pvt. Ltd.
Buyer: Mahanagar Gas Ltd.
Buyer: Abdul Latif Jameel Company Ltd.
$12 mn Domestic Inbound
Announced in: Aug-23
Target: Tirex Transmission Pvt. Ltd.
Buyer: Gulf Oil Lubricants India Ltd. $100 mn
Domestic Announced in: Dec-23
Target: Pinnacle Mobility Solutions Pvt. Ltd.
Buyer: Mitsui and Co., Ltd., VDL Groep
Deal Inbound
$15 mn Value
Announced in: Jun-24
Target: Ather Energy Ltd.
($ mn) $100 mn
Buyer: Hero MotoCorp Ltd.
Announced in: Sep-24
Target: JBM Ecolife Mobility Pvt. Ltd.
Buyer: Asian Development Bank, Asian
Infrastructure Investment Bank
$16 mn Inbound
Announced in: Sep-24
Target: Greenfuel Energy Solutions Pvt. Ltd.
Buyer: Lumax Auto Technologies Ltd.

Domestic
$20 mn
$17 mn Announced in: Apr-21
Announced in: Dec-23
Target: Ather Energy Ltd.
$20 mn Target: Revolt Intellicorp Pvt. Ltd..
Buyer: RattanIndia Enterprises Ltd.
Buyer: Hero MotoCorp Ltd. Announced in: Aug-22
Target: Mecpower Mobility Pvt. Ltd. Domestic
Domestic Buyer: Indigrid Technology Pvt. Ltd.

Source: VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 27

Electric Two-Wheelers:
Powering the Transformation

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 28

Mapping the Electric Two-Wheeler Landscape
Electric two-wheelers are revolutionizing urban commutes, offering sustainable, cost-effective, and high-performance alternatives to
traditional vehicles. With diverse categories catering to varied needs, the industry is set for unparalleled growth.

Low-Speed Electric Electric Scooters

Two-Wheelers
Unicorns Year Founded Unicorn Year
• Typically speed-capped at 25 km/h • Designed for urban commuting
and exempt from registration and with low speeds and affordable
licenses. pricing. 2010 2015
• Ideal for tier-2 and tier-3 cities, • Equipped with user-friendly
catering to budget-conscious designs, lightweight frames, and
buyers. easy charging options. 2013 2024
• Examples: Ampere Reo, Hero • Examples: Ola S1, Ather 450X,
Electric Flash. PURE EV Etrance.

Market Share of E2W OEMs

Includes Soonicorns (23)
Notable ones are -
Electric Motorcycles Shared Electric
4%
Two-Wheelers Fleet
18% 10%
• High-speed options catering to • Electric two-wheelers used in
performance-focused users. shared mobility services like ride-
• Feature advanced designs, powerful sharing and rentals.
motors, and extended range for long • Promotes sustainable urban
rides. transportation with on-demand Others
• Examples: PURE EV Etryst 350, availability. 20% 15%
Revolt RV400. • Examples: Zypp Electric, Yulu
Miracle.

34%

Source: Vahan Portal, VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 29

Transforming Mobility: The Growth of Electric Two-Wheelers
in India
India's electric two-wheeler market is on the brink of an exponential growth curve, driven by increasing consumer demand, government
incentives, and sustainability goals.

Electric two-wheelers are rapidly growing as a share of the EV market, With a CAGR above 25%, India’s E2W market is set to achieve
showcasing their rising acceptance and potential. With two-wheelers exponential growth by 2030. Projections showcase the rise of urban
dominating the overall automobile market, E2Ws have a significant and rural adoption, signaling widespread acceptance of electric
opportunity to capture a larger share. mobility.

Two-Wheelers Other Vehicle Types Elect ric 2 Wheelers Other EV Types Electric Vehicles’ Sales Forecast (in million units)
High Adoption 7.8
44% Medium A doption 6.1
85%
Low Adoption 6.8
22% 4.8
28% 3.8
3.0 5.4 5.6
15% 56% 2.4 4.4 4.6
78% 1.5 1.9 3.5 3.8
72% 1.0 3.2
0.1 0.3 2.3 2.62.8
FY20 FY21 FY22 FY23 FY24 FY25 FY20 FY21 FY22 FY23 FY24 FY25 1.8 1.9 2.2
(YTD) (YTD)
Two-Wheelers’ Share in 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Electric Two-Wheelers’ Share in Total
Automobiles Electric Vehicles
Electric Two-Wheelers' Sales Forecast (in million units)* 5.5
Electric two-wheelers are steadily increasing their share of the total two-
wheeler market. The rise is being driven by favorable policies like the FAME-II High Adoption
4.2
Medium A doption 4.7
scheme and cost competitiveness of EVs versus traditional ICE vehicles. Low Adoption 3.2 3.8
3.7
2.5
1.9 2.9 3.0
1.5 2.5
0.9 1.1 2.3
Electric Two-Wheelers’ Share in Total Two-Wheelers 0.6 1.8 2.0
0.0 0.2 1.4 1.6
1.1
1.1 1.3
0.1%
6.1% 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E

FY20 FY21 FY22 FY23 FY24 FY25 (YTD)

Source: Vahan Portal, EV Dashboard by Clean Mobility Shift *High Adoption – 30% EV penetration as suggested by NITI Aayog, Medium Adoption – 25%, Low Adoption – 20%

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 30

Innovations Shaping EV Two-Wheelers’ Battery Technology
in India
The Indian EV battery market is on a remarkable growth trajectory, projected to surge from $16.77 billion in 2023 to $27.70 billion by
2028. This evolution is driven by cutting-edge innovations like solid-state batteries, advanced BMS, and battery swapping technologies
that redefine safety, efficiency, and convenience in EVs.
Current Battery Technologies Emerging Innovations
Solid-State Battery Swapping
Lithium-Ion Batteries Lithium Iron Phosphate Batteries Technology
(Li-ion) (LFP) Batteries
• Innovation: Replace liquid electrolytes • Innovation: Quick replacement of
with solid ones. discharged batteries with fully charged
ones.
• Advantages: Higher energy density,
faster charging, improved safety. • Advantages: Reduces downtime,
Cathode eliminates range anxiety.
Component • Challenges: High development cost,
limited commercial readiness. • Challenges: Requires infrastructure
Lithium Cobalt Oxide or Nickel
investment and standardization.
Manganese Cobalt Lithium Iron Phosphate • Current Status: In development;
startups and manufacturers like Ola • Current Status: Already set up by
Electric are investing in R&D. companies like SUN Mobility, Battery
• High energy density Smart etc..
• Enhanced safety due to
• Lightweight
thermal stability
Advantages • Longer lifespan Advanced Battery Management Recycling and Raw
• Longer cycle life compared
• Fast charging Systems (BMS) Material Sourcing
to traditional Li-ion
• Efficient performance.
• Innovation: Ensures efficient battery • Innovation: Reclaim valuable materials
performance and safety. from used batteries.
• Expensive
• Sensitive to temperature Slightly lower energy density • Advantages: Improves battery
Challenges • Advantages: Reduces dependency on
• Requires advanced than standard Li-ion efficiency, safety, and longevity. imports, minimizes environmental impact.
management systems
• Challenges: Complex integration into • Challenges: Logistics and scalability of
existing systems. recycling infrastructure.
The most widely used battery
Considered a safer alternative in • Current Status: Actively developed with Current Status: Initiatives undertaken for
Use Case technology in Indian two- •
two-wheelers app-based monitoring systems. localized lithium sourcing and recycling
wheelers
programs.

Source: EV Pedia, India Brand Equity Foundation (IBEF)

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 31

Driving Innovation:
Case Studies from Electric
Two-Wheelers Industry

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 32

Case Study: PURE EV’s Journey in Electric Mobility
Company Overview

Founded in 2015 by Dr. Nishanth Dongari and Rohit Vadera, PURE EV is a Hyderabad-based electric vehicle startup incubated at IIT Hyderabad. The company focuses on
developing electric two-wheelers (E2Ws) and energy storage solutions tailored for the Indian market.

Journey of Innovation and Growth

Raised seed funding Raised $8 mn in

Founded by Dr. and started EV Launched its first Series A funding;
Nishanth Dongari and manufacturing under electric motorcycle Plans to expand into
Rohit Vadera at IIT the brand PURE EV. ‘ETRYST 350’ Middle-East and
Hyderabad. African markets.

2015 2018 2019 2020 2021 2023 2024

Entered into Launched its first Released its first

lithium battery high-speed electric Impact Report
manufacturing scooter ‘EPluto7G’ highlighting the
business. impact of electric
Dr. Nishanth Rohit Vadera vehicles on health &
Dongari (Co-Founder & wellbeing of the
(Founder) CEO) community.

“Pure EV was founded keeping in mind the aspirational needs of Indian customers to deliver to them a reliable, cost-effective scooter
that also speeds up the transition from petrol to EVs in the two-wheeler mobility segment.”

- Rohit Vadera, CEO of Pure EV

Source: Company Website, PURE EV Impact Report, ET Auto, VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 33

Case Study: PURE EV’s Journey in Electric Mobility
Innovation in Motion: Why PURE EV Stands Out

• In-House Battery Manufacturing: One of the few electric two-wheeler OEMs in India with the capability to produce its own batteries, ensuring
quality control and cost efficiency.
• Research & Development: Demonstrated commitment to innovation with over 100 intellectual property filings, focusing on advancing battery
technology and electric mobility solutions.

PURE EV’s Market Presence

80 15 4000 Global Expansion

Outlets States Units per month – Exporting its products to South Asia and has partnered with Arva Electric to
Manufacturing Capacity expand its e-motorcycle sales in the Middle-East and Africa

Financial Performance Transforming Lives with Sustainable Mobility

Total Revenue (in $ mn)

CAGR
Rs. Rs.
84%
80% 20%
29.9 450 cr. 60K
17.1 15.7
8.9
PURE EV customers Total savings in Less Lithium Savings per customer
1.4
clock a daily commute running costs by consumption per km
FY20 FY21 FY22 FY23 FY24
of more than 40Km PURE EV customers than other e-2W peers

Source: Company Website, PURE EV Impact Report, ET Auto, VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 34

Case Study: Ather Energy’s Journey in Electric Mobility
Company Overview

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is a Bengaluru-based electric vehicle startup focusing on smart electric scooters and charging
infrastructure. The company offers electric scooters under the name Ather Rizta, Ather 450 and Ather 450 Apex.

Tarun Mehta Swapnil Jain

(Co-Founder) (Co-Founder)

Journey of Innovation and Growth

Raised angel/seed Ather files for Rs.

funding from Launched its first Installed 1000 fast
4,000 cr. IPO at
Venkatachary Srinivasan product, Ather 450, charging stations
$2bn valuation
and Technology and unveiled across India
Development Board Seed AtherGrid
Fund

2014 2016 2018 2021 2023 2024 2024

Set up first Commissioned Became second

manufacturing plant; second company in EV
Received funding from manufacturing plant space to enter the
Hero MotoCorp to in Hosur ‘Unicorn’ club
accelerate product
development

Source: Company Website, Autocar, VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 35

Case Study: Ather Energy’s Journey in Electric Mobility
Leading the Charge with Innovation: Why Ather Energy Stands Out

• AtherGrid Charging Network: Pioneered India's first public charging network for electric vehicles, "AtherGrid," with fast-charging points in over
100 cities.
• In-house Battery Technology: Ather Energy designs and manufactures its own lithium-ion battery packs, focusing on reliability and efficiency
tailored to Indian conditions.
• Connected Ecosystem: Ather scooters are integrated with IoT, allowing for remote monitoring, diagnostics, and smartphone connectivity via the
Ather app.

Ather’s Market Presence

Units per annum –
100+ Cities 25 States 4.2 lakh
Manufacturing Capacity

Financial Performance ESG in Action

Total Revenue (in $ mn) Environment

• Renewable Energy: 13% energy from renewables.

CAGR 219.8 214.7 • GHG Reduction: 230 MT CO₂ emissions avoided via logistics optimization.
140% Social

• Community Impact: 1,148 hours of volunteering; 500+ children supported.

54.6 • Diversity & Inclusion: 47% women in factory roles; gender-neutral facilities.
12.0 Governance
6.4
• Ethics Training: 99.2% employees trained in the Code of Ethics.
FY20 FY21 FY22 FY23 FY24
• Safety Excellence: 0.81 Lost Time Incident Rate; 88% safety issue closures.

Source: Company Website, Autocar, VCCEdge

Electric Two-Wheelers: Leading the Charge in India’s Mobility Revolution 36

About PURE:
PURE, incubated at i-TIC, IIT Hyderabad, is a pioneer in climate technology, developing innovative energy storage and electric mobility products to offer
seamless consumer experience. Our robust portfolio of over 120 patents underscores our commitment to pushing the boundaries of technology and
delivering unparalleled performance. With a strong presence across India, including over 80 dealerships and a thriving community of over 80,000
customers, PURE is at the forefront of an energy and mobility revolution.

About VCCEdge:
VCCEdge is India’s premier financial research platform providing comprehensive data and information to subscribers for deal origination, deal
structuring and valuations, gaining market insights, carrying out due diligence, and tracking competition. The platform has in-depth profiles of private
and public companies, including detailed financials, deals including private equity, venture capital, M&A, equity capital market issues and debt
offerings, key developments, and detailed data on investors and their portfolios.