Singapore trading house founder leads funding for electric vehicle startup Etrio

Etrio Automobiles Pvt Ltd, an electric vehicle (EV) startup, has raised $3 million (about Rs 22 crore) in a Series A funding round.

The Hyderabad-based company has raised this capital from a clutch of angel investors led by Janardhan Rao, who is the founder of Triumph Global Group, a Singapore-based international commodity trading house.

Etrio was set up in 2017. The company says it is focussed on affordable electric mobility and produces electric vehicles in the two- and the three-wheeler segment to this end. It also undertakes the retrofitting of four-wheelers with EV parts and infrastructure.

The startup will use the capital it has raised to increase its investments and presence in the three-wheeler and bicycle product lines – its three-wheeler brand, Touro, is expected to launch in October.

It will also focus on its go-to market strategy, customer acquisition in the business-to-business (B2B) and consumer segments, sales and service networks in key territories and talent acquisition.

“We will continue to evolve as an EV OEM [original equipment manufacturer], bringing reliable products based on superior vehicle architecture, efficient system integration, robust design and connected systems to drive mass adoption of EVs in India,” Etrio co-founder and chief executive officer Deepak MV said.

Etrio says it has a dedicated vehicle manufacturing and assembly facility in Hyderabad, and that it is looking to achieve the complete localisation of its supply chain by the end of the current financial year. It will also look to raise an additional round of capital during 2021-22.

Deals in electric vehicle segment

The investment in Etrio is indicative of continuing interest in the EV segment, which has also received government support.

Earlier this month, the EV parts and ecosystem-focussed Cellprop Pvt. Ltd raised capital in a pre-Series A round led by early-stage investor GrowX Ventures and clean mobility-focussed seed fund Micelio. Existing investor Endiya Partners also took part in the funding round.

Also this month, electric taxi-hailing and riding platform BLU Smart Mobility Pvt Ltd raised $7 million (around Rs 51 crore) in pre-Series A funding from investors including Inflection Point Ventures, Venture Catalysts, and Suman Kant Munjal family office Survam Partners.

Traditional manufacturers have also made strategic bets in this sector. Electric bike maker Ultraviolette Automotive Pvt. Ltd raised Rs 30 crore ($4.1 million) from existing investor TVS Motor Company as part of its Series B funding round.

In July, Ather Energy raised another Rs 84 crore ($11.21 million) from Hero MotoCorp as an extension of its Series C funding round. Also in July, engineering company Greaves Cotton Ltd signed a pact to acquire Bestway Agencies Pvt. Ltd, a Haryana-based company that develops and makes electric vehicles.