euler motors: EV maker Euler Motors raises Rs 120 crore in down round

Euler Motors, which makes electric three-wheeler commercial vehicles, on Monday said it has raised Rs 120 crore in a funding round that included new investors such as the UK government-backed British International Investment and Indian venture firm Green Frontier Capital.

The firm did not disclose the valuation at which the funding happened, but its founder and chief executive Saurav Kumar told ET that it was at a lower valuation than the previous fundraise—a ‘down round’ in startup parlance.

“The capital is much more important than the valuation at this stage for us, as we are chasing a certain scale,” he said. “In the next few quarters, the company should reach a comfortable scale as well as be in much better shape.”

Euler Motors had last raised $60 million in October 2022 at a valuation estimated between $200-250 million, as per news reports and Tracxn.

The funds raised will be used to expand the business to 40 cities from 22 now by the end of FY24, strengthen its charging network, and on the day-to-day running of the firm, Kumar said.

Majority of the firm’s showrooms are self-owned and self-operated, with about 10 run on a dealership model, he said.

Also read | Electric commercial vehicle maker Euler Motors lays off 250 employeesThe latest funding round also saw participation from existing investors Athera Venture Partners, ADB Ventures, Blume Ventures and GIC Singapore, among others.

It takes total investments into the firm to about Rs 690 crore, Euler said in a statement.

The firm is at an annual revenue run rate of about Rs 200 crore for FY24.

“We envision Euler Motors’ position as a pre-eminent one in the electric commercial vehicle OEM domain. Venturing into an industry primed for groundbreaking growth, we’re confident in the company’s superior product quality and its strategic market placement,” said Sandip Bhammer, managing partner of Green Frontier Capital.

Euler sold 800 vehicles in the second quarter of FY24 against 124 units a year earlier, Kumar said.

The firm has one product, Euler HiLoad EV, which has a 13 kWh (kilowatt hour) battery.

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