NEW DELHI – Indian start-up EVage, which builds electric delivery vans for e-commerce and logistics companies including Amazon.com Inc, has raised $28 million from US venture capital firm RedBlue Capital , the company announced on Friday.
The seed capital will help EVage complete its factory in northern India and begin delivery of “thousands of vehicles” on order, Inderveer Singh, the company’s founder and chief executive, told Reuters.
Like electric vehicle (EV) makers Rivian in the US and Arrival in the UK, EVage is betting on a global shift of delivery companies towards cleaner mobility.
In India’s nascent EV market, Amazon aims to have 10,000 EVs for deliveries by 2025, while Walmart Inc’s Flipkart plans to have 25,000 EVs by 2030. EVage is the first company to build an electric van in India from scratch.
“Vehicle miles traveled on electric vehicles in India will skyrocket with this shift in the movement of goods, and the electrification of this segment is a huge opportunity,” said Olaf Sakkers, general partner at RedBlue Capital.
Compared to the West, India and markets like Southeast Asia, Africa and Latin America have unique requirements in terms of vehicle price and capacity, road conditions and weather, said Sakkers, whose company invests in mobility start-ups globally.
“We see EVage more as a Rivian and an Arrival for developing markets,” he said.
(Reporting by Aditi Shah Editing by Shri Navaratnam) ((email@example.com; +91-11-4954 8023, +91-11-3015 8023; Reuters messaging: twitter: @aditishahsays))