Electric blues: Euler’s fundraise reveals the tough road ahead for EV makers

Pranav Balakrishnan

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Vidhya Sivaramakrishnan

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Pranav Balakrishnan

12 reads

Vidhya Sivaramakrishnan

11 reads

After Ather Energy, another EV manufacturer has been pushed to cut back on its funding ambitions. Euler Motors is close to raising a $25 million funding round, which is less than half the size of its previous one, and reflective of the challenges facing the industry.

August 30, 2023

8 MINS READ

Key Takeaways

EV startup Euler Motors is raising $25 million funding round, which is less than half the amount it raised last year

Sources suggest Euler and other EV companies are looking at upcoming funding rounds as stop gap or “bridge rounds” before a larger funding round

The New Delhi-based startup has moved from company-owned, company-operated showrooms to a dealership model to reduce costs

Euler needs to prepare for a steep climb given it is up against large companies with deep pockets readying strategies to take on the electric three-wheeler market

Euler Motors will follow bigger peer Ather Energy and close a funding round that is smaller than its previous one, a source close to the development told The CapTable, further highlighting the challenges faced by the nascent EV industry in the country.

The source, who did not wish to be identified, said Euler is set to raise $25 million from new and existing investors. This is less than half the $60 million it raised in a round led by GIC Singapore last year.

“A part of the round has already been wired into the company,” the source said about the latest round, adding that the money will be used to expand capacity and hire fresh talent. Several other sources confirmed Euler’s fundraise but did not reveal more details.