Electric commercial vehicle manufacturer Euler Motors raises additional Rs 200 crore in a Series C round

Homegrown electric three-wheeler manufacturer Euler Motors has raised an additional amount of Rs 200 crore in a Series C funding round.

This brings the total raised in Series C to Rs 570 crore and around Rs 770 crore across all funding rounds.

The latest funding round was led by new investor Piramal Alternatives India Access Fund, alongside existing investors British International Investment and Blume Ventures.

Euler Motors offerings

Founded in 2018 by Saurav Kumar, Euler Motors is an automotive OEM focused on transforming transportation in the country with electric commercial vehicles.

The company's flagship model, the HiLoad EV, is touted as the most powerful electric cargo three-wheeler in India, with an ARAI-certified driving range of 170 kilometres. 

The vehicle features a payload capacity of 688 kg, a proprietary liquid-cooled battery, and an inbuilt fast-charging capability. Euler claims that its vehicles have collectively transported goods over 45 million kilometres.

Aiming for expansion

In the fiscal year 2024 (FY24), Euler Motors reported significant growth, selling 3,700 vehicles and expanding its operations from 5 to 22 cities. The company aims to establish a presence in over 40 cities by FY25.

"Our aim is to establish Euler as India’s No. 1 electric commercial vehicle brand with our powerful products and best-in-class services. Over the past 3 years, we’ve demonstrated impressive growth, gained the confidence of customers and created a heightened demand for our products," said Saurav Kumar, Founder & CEO of Euler Motors.

What is the purpose of fundraising?

The company plans to utilize the fresh capital to scale its presence across India, enhance product development, introduce new vehicle variants, and accelerate its research and development (R&D) efforts.

"This fresh capital injection, coupled with the trust of our investors, will propel us towards our goal of double-digit market share. With this momentum, we’re ready to accelerate our growth trajectory and lead the transition to commercial EVs in India,” Kumar said.

How well is Euler Motors performing financially?

For the fiscal year ending in March 2023, The company reported Rs 61.53 crore in revenue from operations, a significant increase from Rs 17.57 crore in FY22. 

However, the company also faced substantial losses, which spiked nearly fivefold to Rs 174.73 crore in FY23 from Rs 36.33 crore in the previous year, as per TheKredible. The company attributes these losses to the investments made in infrastructure and facilities.

In the electric three-wheeler market, it competes with Altigreen, Mahindra Electric, Piaggio, Kinetic Green, and Tata. Notably, Euler Motors also laid off 10% of its employees to manage costs amid a tight funding environment.

Investors comment

Kalpesh Kikani, CEO of Piramal Alternatives, commented on the investment, “We are pleased to participate alongside other marquee investors in furthering Euler Motors’ leadership position. We remain enthused both by the wider EV category itself and Euler Motors’ relative positioning on the back of its strong technology and R&D capability.”

Abhinav Sinha, Managing Director and Head of Technology and Telecoms at British International Investment, emphasized the broader impact of this investment, saying, “We are pleased to continue our partnership with Euler Motors to drive forward the advancement of commercial cargo electric vehicles in India. This sector carries considerable significance in terms of job creation, reducing emissions, and supporting India’s clean energy transition.”