British International Investment to invest $33.5M in Indian EV startups

British International Investment (BII), the UK’s development finance institution, has made investment commitments totalling $33.5 million in India’s electric vehicle (EV) sector.

The commitments comprise $15 million in debt financing to Everest Fleet, $15 million in equity investment in TI Clean Mobility, and $3.5 million in equity commitment to Vecmocon, said BII in a statement.

Everest Fleet will use the funding to expand its EV portfolio by adding 1,300 vehicles to its existing fleet of 2,100 EVs. This will create employment opportunities for drivers in Mumbai, Bengaluru, Delhi, Hyderabad, Kolkata and Chennai.

TI Clean Mobility is focused on creating designing and manufacturing EVs, including three-wheelers, trucks, and small commercial vehicles. BII’s co-investment through GEF’s South Asia Growth Fund III will be used for capital requirements to scale its manufacturing of low-carbon vehicles and to create inclusive jobs at scale.

Vecmocon, an EV component manufacturer, will use the equity investment to enhance its research and development capabilities and enter the commercial EV market. The company designs critical EV components such as battery management systems and motor controllers and has already enabled over 60,000 EVs on Indian roads.

"India's ambitious drive towards sustainable mobility is an inspiring testament to its commitment to a greener future. British International Investment’s support for progressive and innovative companies in India’s zero emission vehicles sector reflects the deep partnership between our nations to address shared global challenges like climate change," said Sally Taylor, Director of Development, Climate, Science, and Tech at the British High Commission.

“EVs remain a nascent sector in India. This is where BII, as the UK’s development finance institution, can support pioneering companies to contribute to India’s energy transition and decarbonisation journey,” said Abhinav Sinha, Managing Director at BII.

BII has been actively investing in India's EV sector. In the past year, it has provided funding to various companies, including LoadShare, a last-mile logistics provider; Euler Motors, a commercial EV manufacturer; Turno, an EV distribution and financing platform; and Battery Smart, a battery-swapping network. It is also supporting ChargeZone's plan to establish a nationwide network of over 10,000 charging stations by 2027.

In 2022, BII partnered with Mahindra & Mahindra to invest up to $250 million in a new passenger electric vehicle venture.

These investments align with BII's broader commitment to climate-friendly initiatives and green technologies in India, with a total investment target of up to $1 billion.