Electric four-wheeler and three- wheeler commercial cargo manufacturer Euler Motors on Tuesday raised $47 million (₹437.5 crore) in a Series E funding round led by Lightrock, with participation from existing investors Hero MotoCorp and Blume Ventures.
The company also secured an additional ₹250 crore in debt from BlackSoil, Trifecta Capital, InnoVen Capital and Alteria Capital. With this, Euler Motors’ total capital raised to date stands at around ₹1,900 crore.
Saurav Kumar, founder and CEO, Euler Motors, said the company will use the fresh funds to double its manufacturing capacity to 2,000 vehicles per month, scale its footprint to 100 cities, and invest in product development and operational capabilities.
“We plan to expand our manufacturing capacity to around 2,000 vehicles a month, scale our presence from 60 to 100 cities, and continue investing in product development and core operational capabilities to support our next phase of growth,” Kumar told FE.
Company profile
Founded in 2018, Euler Motors focuses on electric commercial vehicles catering to last-mile logistics, including e-commerce and fleet operators. The company is also looking to expand in the three-wheeler passenger segment, but will take a “slow and steady” approach.
Alongside manufacturing, the company plans to deepen its distribution network, with a significant portion of the investment expected to go towards market development and awareness.
“Sometimes we help with the market awareness, sometimes we help with infra, sometimes we help with, like, people. So, investment goes from making the market aware, to manpower, to Capex, to service,” Kumar said.
Euler Motors aims to expand its presence from around 60 cities to 100 cities in the near term. The expansion strategy will rely on a mix of dealer partnerships, investments in service infrastructure, and customer awareness initiatives, particularly in emerging EV markets where adoption is still evolving.
The company typically operates one showroom per city, while select Tier 1 cities have multiple showrooms.
Euler is also stepping up investments in research and development, as well as building out its manufacturing capabilities, with an estimated outlay of about ₹400 crore over the next 18 months. These investments will focus on improving existing products, introducing new variants, enhancing vehicle performance, and increasing localization of components.
Kumar said Euler has established a strong presence in the electric three-wheeler cargo segment, where it holds an estimated 10% market share. In the four-wheeler cargo segment, where it entered later than peers, Euler Motors has rapidly scaled its operations and currently commands around 20% market share.
Amid the phasing out of EV subsidies for the three-wheeler segment, Euler is betting on improving unit economics and lower operating costs to sustain demand.