Key Highlights:
- EV2 Ventures’ entry into electric mobility stemmed from global market insights, recognizing the imperative for sustainable transportation solutions in key economic regions.
- Through a comprehensive approach, the firm identifies emerging trends in electric mobility, leveraging industry analysis, technology innovations, government policies, and global collaborations to inform proactive investment strategies.
- EV2 Ventures prioritizes sustainability in investment decisions, balancing profitability with environmental and social impact considerations, thereby shaping a more eco-conscious and economically viable electric mobility sector.
1. What inspired the founding of EV2 Ventures, and could you share your journey into the electric mobility sector? How does this vision guide your approach to investments and partnerships in this space?
With investing experience of over 18 years across Venture and Private Equity, along with handling major transactions such as Silvercar, Oscar Health, ChowNow, SurfAir, Just Inc, Hopscotch, 99co, Innovative B2B Logistics across diverse sectors in various geographies such as Singapore, Indonesia, Thailand, India and the USA, I developed a deep understanding of various markets and sectors. This global exposure gives an immense perspective of the growing concerns of inefficiencies in transportation and logistics, along with a huge potential white space across the Electric Vehicle industry.
Logistics, Supply Chain and Fulfillment, being the backbone of the ever-growing digital commerce industry it was evident that there is a need to shift towards efficient sustainable transportation solutions. In 2018, India ranked 44th in the Logistics Performance Index, a cause for concern given its substantial GDP, which stood at 7th rank globally. Recognizing the strategic importance of the logistics sector, the opportunity to address these challenges became clear. Over the past four years, India has made commendable progress, improving its ranking by six positions to reach 38th Rank in the Logistics Performance Index. With sustained attention to logistics and ongoing infrastructural developments, we anticipate witnessing similar advancements in the coming decade. In addition, the recognition of the EV sector’s growth potential, at a remarkable 66% CAGR, along with the country’s surge in growth and government’s commitment to the EV ecosystem, makes it one of the most attractive sectors to focus on. Culmination of the above led to the decision to shift into the electric mobility sector particularly in high-GDP regions which contribute to significant carbon emissions.
Ev2 Ventures aims to capitalize on this growth by providing early-stage capital to innovative solutions in various aspects of the mobility sector, including EV Ecosystem, Logistics & Transportation, Agri Supply Chain, Warehousing Tech, Micro mobility, Aftermarkets and Financing. The overarching idea is to make India’s transportation more efficient and sustainable, with the integration of technology. We actively engage in partnerships, knowledge management, while simultaneously raising awareness within the ecosystem. From participating in pre-seed accelerators to contributing as a jury member at mobility events, the fund is deeply involved in fostering positive change in the electric mobility landscape. One of the key factors that advantages the companies we invest in is the interplay of our portfolio ecosystem where the founders are interconnected to build synergies and gain market insights from the entire mobility value chain.
2. How does EV2 Ventures identify and capitalize on emerging trends in the electric mobility space? What key indicators do you focus on when predicting the next big shift in this sector?
We employ a multifaceted approach towards identifying emerging trends, keeping a close watch on various industry trends, government initiatives and incentives serves as a crucial leading indicator, helping us anticipate shifts in market dynamics. Our analysis extends to intellectual property, where we closely examine patents and innovations to identify emerging technologies. Additionally, we foster international collaboration, speaking with counterparts worldwide and observing challenges faced globally in the electric mobility sector which also helps us stay abreast of technological advancements, particularly in battery technology and charging infrastructure, as well as market adoption rates and consumer preferences. Assessing supply chain dynamics, tracking investment trends, considering global economic factors, and understanding the role of environmental awareness all contribute to a comprehensive analysis
Moreover, understanding the ecosystem’s shortfalls is integral to our strategy. We direct our attention to areas that demand further innovation, including battery efficiency, vehicle design, upgraded charging infrastructure and component upgrades. By doing so, we not only contribute to the advancement of technology within the electric mobility space but also ensure that our portfolio remains resilient and adaptable to the evolving needs of the market. We are not just observers of trends; we actively shape and contribute to the transformative journey of the electric mobility sector.
3. In what ways does EV2 Ventures integrate environmental and social impact considerations into its investment decisions? How do you balance the pursuit of profitability with sustainable and responsible investing in the electric mobility sector?
As a mobility-focused climate venture capital firm, sustainability is not merely a consideration but the very core of our evaluation criteria. Demonstrating the synergy between profitability and a commitment to the environment, our portfolio proudly supports 200,000 blue-collar jobs, has facilitated 15 million deliveries, contributed to a remarkable saving of 1 billion kilometers and have saved over 0.5 million tonnes of CO2 emissions on a yearly basis.
Our commitment to environmental and social responsibility is woven into our investment decisions through rigorous ESG analysis. Aligned with SDGs 7, 8, 9, 12, and 13, we prioritize investments in companies driving clean energy solutions, promoting fair labor practices, fostering innovation, advocating responsible consumption and production, and contributing to climate action. It’s important to note that our dedication extends beyond these SDGs, ensuring a comprehensive approach where our pursuit of profitability goes hand in hand with sustainable and responsible investing in the dynamic electric mobility sector. Micro-mobility and Ride-sharing initiatives extend beyond convenience, providing efficient transportation, employment opportunities and market access for those underserved by traditional transportation whereas in Electric Vehicle (EV) Ecosystem, each advancement inherently aligns with the pursuit of cleaner energy, actively addressing CO2 emissions.
With regard to the aspect of profitability, The resilience and sustained growth of our portfolio during economic downturns underscore the viability of integrating sustainability into business strategies. Our investments not only have shown immense growth over the last few years but have also aligned with the values of responsible and ethical business practices. This success serves as a testament to the notion that companies embracing sustainable and responsible principles can thrive economically while making meaningful contributions to a more environmentally and socially conscious world.
4. Could you elaborate on how EV2 Ventures supports its portfolio startups in overcoming scaling challenges, particularly in the context of the unique demands and opportunities of the electric mobility market?
Launching an early-stage startup in the dynamic mobility sector poses considerable challenges—high R&D costs, regulatory uncertainties, and intense competition. Beyond funding, our commitment is multi-faceted. We offer strategic mentorship, tapping into our team’s industry expertise, Networking opportunities that provide crucial connections, while assisting the founders with market insights and competitive intelligence. We also assist in team building, due diligence, and access to vital resources.
Our investment thesis revolves around key pillars: Positive unit economics, ensuring financial viability; Transparent practices, fostering trust and integrity; Company-friendly approach; Lasting growth, focusing on sustainable and long-term success; and Sustainability impact. We’ve strategically covered the entire Electric Vehicle (EV) supply chain, spanning from components to Original Equipment Manufacturers (OEMs) to fleet operators. This deliberate approach also allows us to facilitate a seamless exchange of knowledge and expertise within our portfolio
Within this tight-knit circle, a ripple effect is created, where advancements and innovations in one aspect of the ecosystem have positive implications for others. From addressing the intricacies of first mile supply chain through Enmovil to providing targeted support for commercial adoption among fleet operators through Alt Mobility & Eveez, our portfolio companies benefit from a shared pool of knowledge.
This collaborative ethos is more than a philosophy; it’s a practical approach that recognizes the interconnected nature of the electric mobility market. By leveraging the collective strengths of our portfolio companies, we provide comprehensive and tailored support. Whether it’s untangling supply chain complexities or facilitating the adoption of innovative solutions, Ev2 Ventures is committed to nurturing an ecosystem where every advancement positively influences the broader landscape of electric mobility.
5. What is EV2 Ventures’ long-term vision for the electric mobility industry, and how do you plan to drive positive change and innovation in this sector in the coming years?
At Ev2 Ventures, our vision extends beyond the present to a future where groundbreaking technologies redefine the landscape of mobility in India. Looking ahead, our long-term plan is anchored in raising additional funds, fortifying our investment thesis, and broadening our focus to include Battery Tech & Energy Storage, Advanced Logistics and Space Tech as focus sectors while targeting close to 1% reduction in India’s CO2 emission (Around 10 million MT under the ambitious scenario of 2 Bn MT emission in 2030) by the next five-six years over the first 2 Funds. However, the targeted impact will be much larger with future Funds with a larger capital allocation in the cleantech sector.
Our long-term vision involves driving positive change by pushing the boundaries of technology and investing in futuristic solutions within the electric mobility sector while supporting sustainable mobility trends around Agri-Supply Chain, Micro/Shared Mobility, EV Financing & Aftermarkets, Autonomous Vehicles, Multi-Modal Transportation, Smart Infrastructure, and Alternative fuels improving transportation efficiency and reducing the overall cost of logistics in the GDP. In our pursuit of positive change, we aim to contribute significantly to advancements in technology, sustainability, and inclusivity within the electric mobility sector. The future we envision is one where our investments play a pivotal role in shaping the mobility landscape of India, influencing not only the way people move but also the environmental impact of transportation.
