Clean Motion's Indian Arm Raises $1 Million in Seed Funding

Clean Motion, a Swedish electric vehicle (EV) maker, has announced that its Indian subsidiary has secured $1 million in seed funding from India Accelerator-backed micro venture capital (VC) firm Finvolve.

Deb Mukherji, head of Clean Mobility Solution India, stated that the company plans to raise a Pre-Series round of $3 million to $5 million early next year. The new capital will be used to scale operations, expand the team, and establish a dedicated manufacturing facility in Pune for their flagship three-wheeler passenger EV, Zbee. Additionally, funds will be allocated to develop EV charging infrastructure in India.

"We appreciate the trust that India Accelerator, Finvolve, and other prestigious investors have put in our company’s capabilities. Our strategic allocation plan will help us scale our operations, focused on strengthening the country’s ‘Make in India’ efforts and solidifying its position as a leader in the global urban mobility transportation space," Mukherji said.

Finvolve co-founder and CEO Ashish Bhatia commented, "It is our strategic investment in the EV space, and we are confident that India’s favourable manufacturing environment will provide an impetus for growth to Clean Motion, bringing about a significant shift in the global EV market."

Clean Motion AB, the parent company, is known for manufacturing electric vehicles and components, with their flagship product being the electric three-wheeler Zbee, which can last for 50 km on a single charge. With this funding, Clean Motion AB is making a significant foray into the Indian market.

The Indian subsidiary aims to focus on first and last-mile services, offering mobility solutions that connect key locations such as metro stations, malls, colleges, and offices. This development comes as global and domestic companies ramp up their portfolios in India, driven by the country's growing EV adoption.

In related news, Tata Motors is planning to launch multiple cars under the brand name Avinya, and last month, electric vehicle battery manufacturer Maxvolt Energy Industries raised $1.5 million in a funding round from multiple angel investors.

The growing Indian EV market is projected to be a $266 billion market opportunity by 2030, highlighting the significant potential for companies like Clean Motion to capitalize on this burgeoning sector.