EV Start-Ups Drive Innovation Despite Funding Challenges These start-ups are not only innovating new but changing the entire landscape with newer technologies, and unique ideas of a sustainable mobility in the country.

India's ambition to become global leader in electric vehicles (EVs) is gaining traction as the automotive industry is undergoing a remarkable transformation driven by the emergence of EV start-ups in this space.

These start-ups are not only innovating new but changing the entire landscape with newer technologies, and unique ideas of a sustainable mobility in the country.

Start-ups are challenging the established automakers by introducing innovative technologies and fresh business models. Unlike traditional manufacturers, which often rely on legacy systems and practices, these newcomers are nimble and adaptive, allowing them to capture consumer interest in unprecedented ways.

Recently, Euler Motors have launched India's first Advanced Driver Assistance System (ADAS) equipped Light Commercial Vehicles (LCVs) for inter-city and intra-city usage. The company researched and developed a product that seems to be safer than any other electric LCVs.

"Everybody is learning what it means to own an electric three wheeler, that is now well understood," Saurav Kumar, Founder & CEO, Euler Motors said.

While these start-ups are coming up with new technologies, they also face challenges in terms of getting funding for the project. While many start-ups are closing big funding rounds, most of them are struggling to get a fund for their start-ups.

According to Christie Fernandez, Founder, Sooorya EV, most of the investors expect to see a prototype before funding and they are wary of investing in the sector as it involves huge capital.

Speaking to BIZ Experiences Christie said, "Investors are unable to evaluate the amount of efforts that goes into vehicle design, development & production, are unaware of the typical budgets for new vehicle development."

He further said, "Start-ups in India are struggling to raise adequate funds and build EV's whereas EV start-ups in China, Europe & America have access to more funds including from their government."

One of the most striking impacts of EV start-ups is their commitment to technological advancement. These companies are leading the charge in areas such as battery technology, autonomous driving, and vehicle-to-grid systems.

For example, startups are investing heavily in solid-state batteries that promise greater energy density and faster charging times compared to traditional lithium-ion batteries. Moreover, advancements in autonomous driving technology are being explored by various start-ups, aiming to create safer and more efficient transportation solutions.

Sustainability is at the core of many EV startups' missions. These companies are not only focusing on producing electric vehicles but are also prioritizing sustainable practices throughout their supply chains.

As electric vehicle start-ups continue to flourish, they are poised to shape the future of urban transport and shared mobility solutions. These companies are developing technologies that could redefine how we approach transportation, focusing on sustainability, accessibility, and efficiency.

Meanwhile, Madhumita Agrawal, Founder & CEO, Oben Electric said that access to funding is crucial for any start-up, but it becomes even more critical in the hardware sector, such as automotive, where the challenges are magnified. In India, the difficulty in securing funding for hardware startups is particularly pronounced. Unlike software and SaaS ventures, which often attract more attention from venture capitalists due to their scalable nature and lower initial investment requirements, hardware startups face a different set of hurdles.

"These investors are usually family offices, high-net-worth individuals (HNIs), or BIZ Experiencess with a background in hardware who can provide both capital and strategic support," she said.

"Fostering relationships with such investors can also open doors to strategic partnerships, industry connections, and operational guidance that are essential for growth. The nuanced understanding of hardware's capital and operational demands means that such investors are better equipped to offer the patience and support required to scale an EV startup successfully," she added.