Electric vehicle retro fitment kit maker Etrio has raised $3 million in its Series A funding round from a group of high networth individuals, as it looks to diversify its business into making electric three-wheelers and e-bicycles.
The Hyderabad-based company has been working on electrification kits for Maruti Suzuki’s Alto and Dzire, but has now turned its attention to the business-to-business market with its electrification kit for the Tata Ace light commercial vehicle.
Etrio has found takers for its homologated electric LCVs in ecommerce and logistics firms for their last-mile delivery requirements, claiming to have orders for more than 1,250 units, primarily from ecommerce and logistics firms.
“E-commerce companies are very committed to electrification of their fleets. It’s not just for the green credentials, but the cost of diesel has gone up and the cost of diesel vehicles has also gone up because of BS6 norms. So they’re looking at EVs for their cost benefits,” said Deepak MV, cofounder and CEO at Etrio.
With the fresh funding, while Etrio will continue to pursue developing and manufacturing retrofitment kits for LCVs, the company is looking to build its own brand of three-wheelers and electric cycles within the next 6-9 months.
It will start with cargo three-wheelers, for which it claims it already has 500 orders. But it will also look at moving into the passenger and consumer segments with some of its products and is looking to set up a dealer network for sales in the coming months.
“We will use this capital to get over 1,000 EVs on the roads, so ramping up production, introducing variants, hiring and scaling,” added Deepak MV.
Etrio also offers vehicle tracking and management solutions to B2B buyers, which it says will take its role beyond traditional OEMs that only look at sales and after-sales service.
Flipkart had earlier said it will transition its entire delivery fleet to electric vehicles by 2030, while rival Amazon plans to deploy 10,000 electric vehicles in its fleet by 2025.