NEW DELHI: An Amritsar-based electric bike rental startup, eBikeGo, says it has raised $300,000 in the latest round of funding led by Startup Buddy, a startup business consultancy in Gurugram. EBikeGo is now expanding operations to 4 other cities (Mumbai, Bangalore, Hyderabad and Pune) to meet increasing demand and also ramping up their fleet in cities they are already in. The company says they are also working to expand the service network in different parts of Delhi to provide a solution for customers and business partners using the two-wheelers.
EBikeGo is an electric two-wheeler rental platform that provides economical and environmentally friendly fleet solutions for last mile delivery. This shot in the arm for the startup comes as auto industry stakeholders meet to discuss India’s EV strategy at the World EV Show in Delhi.
According to the press release, eBikeGo founder Irfan Khan saw an opportunity for reducing two-wheeler emissions and raised capital from friends and family to start this company in Amritsar. After a strong initial response, the company expanded to 4 cities in 2 years and is planning to expand to 8 cities in the third year.
“EBikeGo has contracts signed with multiple companies and has letters of interest from many others to provide a fleet. We plan to go to pre-series fundraising rounds very soon to meet the rapidly growing demand,” said Khan.
The ebike rental platform is already working with various delivery companies to convert their fleet into electric, and says it has provided fleet solutions to Zomato, Delhivery, Ferns & Petals, Gostops, and others. It also hopes to expand the network to include Chennai, Kochi and Kolkata in the near future.
As Hyundai begins operating autonomous KONA electric vehicles in California, the e-mobility market has seen a steep incline in business this year. Although not a vehicle manufacturer, if eBikeGo is successful it will be a two-wheeler focused entrant in the fast growing EV market, which is expected to reach $359 billion globally by 2025.
“EBikeGo is solving the major problem of pollution in India by converting the fleet of petrol two-wheelers to electric, and at the same time it is helping drivers to increase their takehome income by more than 25%,” said Amit Singal, founder of Startup Buddy.
Given the disproportionate vehicle ownership of bikes vs cars in India, it is vastly more likely that the EV revolution will be heralded by two-wheeler centric players than four-wheeler OEMs. In other words, the Indian Tesla will have two wheels.
“EBikeGo is addressing the dual problems of pollution control and employment generation. It intends to save about 21 million tons of emissions coming out of petrol bikes in the next 5 years, and simultaneously aiding the employment of youths who do not have to own a bike to get jobs,” said Milind Garud of Midas CFO who has also invested in the company.
This funding round saw participation from other investors like singer Sukhbir Singh, Rajesh Sawhney (Co-Founder of Innerchef), Rohit Chanana (Founder, Sarcha Advisory), Siddartha Ahluwalia (Founder of 100x Entrepreneur), Boudhik Ventures, Arun Gholap, and Shantanu Vinekar.