The EV startup segment has attracted close to $1 billion investment in 2022 and if industry perspective and investor sentiment is any indication, the segment is set for even massive fund inflow in 2023.

Given the rising interest in clean tech, there is a growing inflow of funds in technologies and companies working on clean mobility and the infrastructure. But apart from the climatic requirement and the necessity to bring about cleaner transportation tech and fuel, there is one that’s pure economics.

With concerns about a looming global recession, and subdued GDP forecasts in most major markets, investment options with healthy returns are limited. Given the low penetration and high growth prospects for EVs in India (CAGR of ~75% in components and vehicles over the next 5 years), “the business prospects look bright compared to the yields in the western markets. Hence, the soaring EV Investments in India is rightfully earned with sustained policy support, commitment from industry players and consumer demand, and all set to continue,” explains Subhabrata Sengupta, Executive Director and Aravind Subramanian, Senior Consultant – Avalon Consulting

Analysts believe that there is a huge scope for companies to add value in the whole electric mobility ecosystem like the charging infrastructure, batteries, vehicles, till the components that goes into these vehicles. We see a cumulative growth of about 75 percent in the EV component space alone.

HOP Electric, which recently closed a strategic round of $2.6 million as part of an ongoing $10 million pre-series fundraiser, sees EV investment as a got to choice. Nikhil Bhatia, Chief Operating Officer – HOP Electric Mobility said, “The recently closed strategic funding is a morale booster for the entire HOP family, which is working relentlessly to provide best-in-class energy mobility solutions to your doorstep. The conviction and confidence of such prominent investors encourage us to do better every day. We are positive that this pre-seed fundraiser will soon reach its goal.”

Revfin Services too is gungho about the Series A round of funding worth $10 million in a combination of equity and debt. According to, Sameer Aggarwal, the Founder and Chief Executive Officer, Revfin, “With the increasing pollution and initiatives by the central and state government in terms of battery safety, charging infrastructure and EVs, the Indian EV market, valued at $3.21 billion in 2022, is expected to grow to $113.99 billion by 2029, at a compound annual growth rate of 66.52%, according to a Fortune Business Insights report. India has great potential to not only electrify its vehicles but also to become the world’s leading EV manufacturer, creating a significant amount of employment opportunities and boosting the GDP.”

Inderveer Singh, Founder & CEO, Evage corroborates to the view and highlights how innovation and new technology attracts funding- “We have tested five prototypes over the last 24 months and clocked more than 350,000 kilometers. RedBlue Capital invested $28 million, one of India’s largest seed fund rounds in the mobility space, earlier this year in 2022. It is great to have an investment partner focused on backing global start-ups in the transportation, logistics and energy-transition sectors.“

However, what’s heartening is the trend that it sets for future investments. Rajat Verma, CEO & Founder, Lohum is optimistic, “The outlook on the EV sector is positive, and we will be seeing growth in scale and quality simultaneously. Last year we saw a significant level of growth which is set to continue due to more efficient technologies, comprehensive EPR and BWMR implementation, and the continual growth of EV charging infrastructure.”

As India’s potential cell production capacity becomes clearer, the Fame-II scheme receives extension and circular economy policies take shape,Dheeraj Tiwari, Co-founder and CEO of Capgrid Solutions is targetting close to 30 times the current growth trend in the new year, “2022 was the year of 0-1 journey for CapGrid and we are looking to go from 1-10 in 2023. We are already working with two-wheelers (EV and ICE), three-wheelers (EV and ICE), tractor and agri equipment and Heavy construction equipment manufacturers and looking to expand to serve Passenger and commercial vehicle manufacturers in 2023. CapGrid is targeting 30-50X growth of Monthly revenue run rate in 2023.”

The most critical challenge in this journey has been the lack of financing options. In the coming years, EV financing will be the most important enabler of EV adoption says Sumeet Singh, Partner, Climate Angels- a SEBI CAT I investment fund focused on creating a sustainable future, “Growing environmental concerns have not only paved the way for climate tech startups but have also increased their importance manifold. As per a recent report, $1.4 billion has already been invested in such companies. it is expected that in the coming years, climate tech will emerge as the biggest disruptor and the early-stage ventures will attract investments for climate innovation.”