Mobility mood is electric, but why aren’t EV-charging startups feeling it?

Mobility mood is electric, but why aren’t EV-charging startups feeling it?

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Supriya Roy

41 reads
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Supriya Roy

41 reads

India’s electric-vehicle ecosystem, including charging infra, may reach its breakout moment in a few years. But the demand today is not enough for startups to keep investing in charging stations that will take years to deliver real revenue. So, many are pivoting, and here’s how:

September 14, 2022

11 MINS READ

Since its launch in 2017, Magenta has built charging stations for electric vehicles in major cities, joining a clutch of clean-mobility startups propping up India’s patchwork EV infrastructure. In tech capital Bengaluru, it runs 11 locations, and the busiest ones see about 50 rides plugging in and out on a regular day. 

Commercial fleets of two- and three-wheelers tap this network and keep the company’s charging-as-a-service business ticking over. It signs up the willing clientele for at least 250 electrical units a month, earning Rs 13.5-17 per unit under a variable pricing model. It also sells parking at the monthly rates of Rs 1,800-2,500 per vehicle. 

With these numbers, Mumbai-based Magenta manages to avoid bleeding cash on operations. But that’s cold comfort when you are in a red-hot global industry, which has the weighty responsibility of driving the gasoline-to-green shift and aiding climate efforts.

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