Magenta, an Indian startup that provides charging and mobility solutions for electric vehicles, has raised $40 million in Series B funding.
According to an interview with DealStreetAsia, co-founder, Maxson Lewis said the company has raised $20 million in equity funding, with two marquee global investors serving as the primary funders.
Lewis also claimed, without naming the investors, that the company had raised $20 million in debt during the same round. He said the company would likely make a statement within the next two weeks.
In 2020, Magenta had already gotten money from JAN (JITO Angel Network) and LetsVentures for its pre-Series A. This came after HPCL gave Magenta seed funding in 2018, and Microsoft’s global startup program helped Magenta. In May 2021, Indian-American billionaire and serial entrepreneur Kiran Patel invested $15 million as part of a Series A round of funding.
Company operations are divided into the EVET (electric vehicle fleets), ChargeGrid (charging stations), and chargers divisions. Charging contributed 25%, charger sales contributed 35%, and consumer mobility contributed 40% of its $6.2 million in revenue in 2021.
Without providing specifics, Lewis claimed the company was “just about profitable” last quarter and would become profitable in April.
This new round of funding comes about nine months after Magenta co-founder Darryl Dias told DealStreetAsia that the company was hoping to raise $20 million to $30 million in a Series B funding round. He said that the company’s growth was a good sign and that they expected to make money in eight to ten months.
The Magenta team has been busy setting up new offices in Indian cities like Hyderabad, Chennai, Delhi, and Chandigarh. There are currently 600 vehicles in the company’s fleet across the country. By the fiscal year 2023–2024, that number is expected to rise to over 4,000.
Even though India’s economy is unstable and there is a funding freeze that has been talked about a lot, the electric vehicle industry is growing at a very fast rate. DealStreetAsia reports that in 2022, electric vehicle companies raised $902 million across 60 deals. Startups centered around batteries and electric vehicles are included.
By 2030, India plans to have 30% of its personal automobiles, 70% of its commercial vehicles, and 80% of its motorcycles and scooters be electric. This is equivalent to 80,000,000 electric vehicles on Indian roads.
Gogoro, a Taiwanese battery-swapping service provider and electric two-wheeler manufacturer, is in charge of Zypp Electric, an EV-based hyperlocal delivery company. On Wednesday, the company raised $25 million in equity and debt funding. Last year, Yulu raised $82 million from Canada’s Magna for fleet expansion and its battery network, while EV and clean energy startup Simple Energy raised $20 million in a bridge round.