RedBlue Capital leads $28m seed round for EVage, the leading all-electric Indian light commercial vehicle OEM

NEW DELHI

3 mins read

– One of India’s largest seed rounds

US-based venture capital firm RedBlue Capital has invested USD 28 million in EVage – the leading all-electric commercial vehicle OEM in India supplying EV trucks to major delivery fleets such as Amazon India’s Delivery Service Partner. This is among the largest seed rounds for any Indian start-up and will allow EVage to complete its production-ready factory outside of Delhi in FY 2022-23 and scale up production.

EVage has developed a platform for industry-ready electric vehicles that exceed the quality of comparable options available in India and other emerging markets at a far lower cost basis, passing on significant total cost of ownership (TCO) savings to its customers.

EVage’s design and manufacturing methodologies leverage nearly a decade of proprietary hardware, software and process innovations. EVage will manufacture vehicles in ‘Modular Micro Manufacturing’ factories with smaller footprints and less capital requirements than traditional automotive OEMs.

EVage’s first vehicle, the Model .X (point X), is a one-tonne truck designed for the commercial delivery vehicle market, and is undergoing a seismic shift towards electrification. The Model .X was designed and built in close coordination with early fleet customers including Amazon India’s Delivery Service Partner, to which EVage is a supplier.

“EVage’s vehicle platform and fabrication approach is something totally new and much needed to accelerate electrification in low cost markets. The founders took a completely clean-sheet approach to get a truck that meets the needs of delivery fleets across India at a cost basis that beats internal combustion,” said Prescott Watson, General Partner at RedBlue Capital. “The fact that such an innovative product is being used today by major fleet customers makes EVage a clear standout in their field – this is the team that’s actually delivering.”

“India is a market with booming EV demand especially in the commercial vehicle segment, but there is a severe supply shortage. EVage fills this exact gap. We’re excited to be partnering with them through our India Green Growth fund,” added Olaf Sakkers, General Partner at RedBlue Capital. Both partners will join the board of EVage.

Inderveer Singh, Founder & CEO, EVage, said, “We welcome RedBlue Capital in our mission to supercharge EV adoption in India, with its consequent social, environmental and economic benefits. When we pioneered our highly adaptive and modular multi-vehicle platform in 2014, it was a journey into the unknown. The success of new global OEMs and their impact on electrifying transport in the US & Europe is a testament to what we can do in India and other price-sensitive countries.”

Inderveer added, “We’re aggressively hiring from the top automotive & aerospace companies in India and globally and are looking for mission-driven people who understand the value of electrifying the world’s transportation, especially in emerging markets.”

About EVage:

EVage has fused automobile designing with the ingenuity of aerospace engineering to reimagine and transform the mobility industry. This has led the company to develop breakthrough products like the modular single skateboard for building multiple vehicle types, a lightweight yet tough exoskeleton covered with space-grade composite material, ultra-stable batteries with advanced chemistry, all manufactured in a super-efficient microfactory.

The company currently employs around 50 people from both Aeronautics and Automobile backgrounds at its R&D and Robotics centre in Mohali, India.