EMotorad, an Indian startup manufacturing bikes that are electric raised $20 million in a Series B round as it aims to disrupt China’s market domination and expand its presence in global markets.

The Three-year-old startup has raised more than $22.5 million in total funding, with Singapore’s Panthera Growth Partners leading the round that is latest, along side involvement from Alteria Capital, xto10x Technologies, and Green Frontier Capital — the startup’s existing buyer. Furthermore, the funding that is fresh includes a debt of $2.5 million.

The demand for e-bikes is growing in markets beyond China and India as people seek to reduce their reliance on fossil fuels, ease traffic congestion on the roads and find transportation that is alternative that don’t require thorough physical working out in their everyday drive. In 2021, the global world Bank predicted (PDF) that as many as 300 million e-bikes will circulate in cities across the globe by 2023. However, despite growing demand worldwide, e-bike supplies rely heavily on Chinese manufacturers. EMotorad is striving to overturn this trend by establishing its manufacturing operations in India.

“Almost 99% of the global globe procures e-bikes from Asia, and that’s that which we wish to alter. It’s a $40 billion business globally. Therefore we are making an effort to make a dent in that,” Kunal Gupta, co-founder and CEO at EMotorad, stated in a job interview.

Gupta co-founded the startup with Rajib Gangopadhyay, Aditya Oza and Sumedh Battewar in 2020 after investing time into the flexibility industry and investing early years into the two-wheeler bike space that is rental. The startup that is pune-based its trip into the Indian marketplace and extended its existence to international areas in 2021. The startup exports its e-bikes to much more than18 nations through white labeling and offering its models that are own-branded. EMotorad has a brand presence in five countries, including the U.S., Europe, Australia, Japan, and some Middle Eastern markets.

EMotorad presently has a portfolio of 14 e-bike models, with 7 to 8 available in India and the rest for global markets. The lineup is priced between $600 to $1,200 in the U.S. and 600 to1,500 euros in Europe.

Gupta told For Millionaires that the quality, technology and service that is after-sale a few of the USPs of EMotorad bicycles.

“You can’t constantly contend on your own rates. But we a uptick that is significant the quality of the product,” the co-founder said. “The batteries and the motors could not have been made smart with a software layer of technology because, of course, it was in an capacity that is outsourced”

The startup has actually a 50-member technology center in Bengaluru that will help develop the proprietary technology, he included.

EMotorad Promises to resolve any presssing issues within 48 hours of receiving user complaints. The bikes feature a display that shows an error code to indicate any nagging difficulties with the engine or electric battery elements. This can help people rapidly identify and report dilemmas into the producer for prompt quality.

The startup assembles battery packs, engines, as well as other elements at its center in Pune, that could create as much as 90,000 bicycles yearly. The organization is creating a brand new facility that is 150,000-square-foot estimated to be ready in the next three months — with an “in-house smart drive train” to develop all major components, from batteries and motors to displays and chargers natively. It shall have a capacity of making 400,000 devices yearly, Gupta said.

In inclusion to a unique center, the startup works closely with several lovers across Asia to satisfy demand that is local. Even though the country, the world’s largest market that is two-wheeler won’t have an important e-bike commuter base right now, EMotorad thinks it’s selecting up.

“India’s flexibility on electric bikes was scaling tremendously. There’s a rather uptick that is positive,” Gupta said.

EMotorad has its presence in 200 stores across the country and is targeting to expand it to 800 stores in the next 18 months.

Last year, the startup sold 40,000 units worldwide, of which 10,000 were sold in India alone. Overall, its sales to date are 80,000 units, generating nearly $36 million in revenues.

“This year, we’ve seen a uptick that is significant of 400% from just last year inside our domestic company,” Gupta said.

The startup stated it created almost $2 million in incomes from Asia year that is last aims to grow to about $7.8 million this year.

Globally, EMotorad looks to compete against the likes of Rad Power, Lectric and Cowboy by bolstering its presence in the U.S., Europe and Australia. It aims to expand its global sales to 100,000 by the year that is financial.

“We strongly think the marketplace is very big enough for several people to fit in… luckily, inside our benefit, what’s occurring is perhaps all the brands that are chinese existed until last year are going out of business because of all the legal implications coming on these companies from international businesses primarily from Europe and the U.S.,” Gupta noted.

The startup, which has a total headcount of 160 people globally, has a business that is distribution-led the U.S., offering its services and products through vendors. Likewise, Australian Continent, Japan in addition to U.A.E. will be the franchisee areas for EMotorad. But, this has a unique existence in European countries, including warehousing and a tiny set up center situated in Spain. It appears to be to grow its customer company in European countries through the use of the fundraising that is fresh