India's new energy vehicle companies are set to raise more than $1 billion

Venture capital (VC) and private equity (PE) funding for Indian NEV companies is set to surpass the $1 billion mark for the first time in 2022. $776 million of financing has been completed in the first half of 2022, surpassing the $636 million raised in all of 2021.

Sales of new energy vehicles of all types have been growing steadily in India. Growing demand and increased competition are driving the development of capital requirements in the industry.

Electric two-wheeler manufacturers dominated fundraising activity in India in the first half of 2022. In the first six months of this year, more than 240,700 high-speed electric two-wheelers (with a top speed of more than 25 km/h) were sold in the country, significantly surpassing the total of 143,300 sold in 2021.

Indian consumers' reliance on ride-sharing began to rise after two years of COVID-19 restrictions ended. Companies operating new-energy fleets are now aggressively pursuing expansion plans, more than doubling their fundraising to $94 million in the first half of 2022 compared to 2021.