Indian e-bike startup EMotorad secures $20M, challenging China’s global electric bike market dominance.
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Indian E-Bike Startup Challenges China’s Market Dominance
EMotorad, an Indian electric bike startup, recently secured a significant $20 million Series B funding. This investment propels the company’s ambitious plan to disrupt the global e-bike market, currently dominated by China. This latest financial boost brings EMotorad’s total funding to over $22.5 million.
A Collaborative Funding Effort
Singapore’s Panthera Growth Partners, joined by Alteria Capital, xto10x Technologies, and Green Frontier Capital, are leading the charge in this round. Notably, the funding round includes a substantial $2.5 million in debt.
E-Bikes: A Growing Global Demand
The need for e-bikes is surging worldwide as people seek sustainable, congestion-free, less physically demanding commuting options. The World Bank’s 2021 prediction estimated that around 300 million e-bikes would be used globally by 2023. EMotorad aims to capitalize on this demand, challenging the current supply landscape dominated by Chinese manufacturers.
Changing the Global E-Bike Landscape
In an interview, Kunal Gupta, EMotorad’s co-founder and C.E.O., stated, “We aim to disrupt the $40 billion international e-bike industry, heavily reliant on China.” Founded in 2020 by Gupta, Rajib Gangopadhyay, Aditya Oza, and Sumedh Battewar, EMotorad began its journey in India and expanded globally in 2021. The startup now exports its e-bikes to over 18 countries and has a significant brand presence in the U.S., Europe, Australia, Japan, and the Middle East.
A Diverse Product Range
EMotorad offers 14 e-bike models, ranging from $600 to $1,200 in the U.S. and 600 to 1,500 euros in Europe. The company emphasizes quality, technology, and after-sale service as its unique selling points.
Innovative Technology and Customer Service
Operating a 50-member tech center in Bengaluru, EMotorad develops proprietary technology in-house. The startup guarantees a 48-hour resolution time for customer complaints and has equipped its bikes with displays that show error codes for quick troubleshooting.
Scaling Up Production
EMotorad assembles its bikes in Pune, with an annual production capacity of 90,000. A new 150,000-square-foot facility is underway, promising a yearly output of 400,000 units. This facility will develop components like batteries, motors, displays, and chargers in-house.
Expansion in India
Despite India’s currently modest e-bike market, EMotorad sees significant potential. With its products available in 200 stores nationwide, the company plans to expand to 800 stores in the next 18 months.
Impressive Sales and Future Goals
Last year, EMotorad sold 40,000 units globally, generating nearly $36 million in revenue. The company aims to boost its Indian revenue from $2 million to $7.8 million this year and compete globally with brands like Rad Power, Lectric, and Cowboy.
Global Market Strategy
EMotorad operates through distribution channels in the U.S. and franchisee models in Australia, Japan, and the U.A.E. The company has a direct presence in Europe, including warehousing and a small assembly facility in Spain.
A Vision for Global Micro-Mobility
Shilpa Kulkarni, founder and general partner at Panthera Growth Partners, expressed confidence in EMotorad’s vision to become a leading micro-mobility company from India for global markets.
In summary, EMotorad’s recent funding marks a significant step in its quest to become a key player in the global e-bike market, challenging the existing dominance of Chinese manufacturers and expanding its footprint worldwide.