In a significant boost to India’s electric vehicle manufacturing sector, Delhi-based Euler Motors has secured up to $20 million in debt funding from responsAbility Investments AG. This latest financial injection aims to amplify the company’s production capabilities and expand its distribution networks, while bolstering research and development initiatives in the commercial EV space.
The funding announcement comes shortly after Euler Motors successfully closed its Series C round, where it raised ₹200 crore from prominent investors including British International Investment, Blume Ventures, and Piramal Alternatives India Access Fund. This consecutive funding success signals strong investor confidence in India’s growing commercial EV sector.
The fresh capital will primarily support the scaling of Euler Motors’ recently launched four-wheeler Storm EV, designed specifically for logistics and e-commerce applications. This strategic focus aligns with India’s push toward sustainable commercial transportation solutions and the growing demand for electric vehicles in the logistics sector.
Saurav Kumar, Founder & CEO of Euler Motors, emphasized the strategic importance of this funding: “This new funding will boost us to scale further, expand our reach, and continue delivering sustainable, high-performance solutions that meet India’s unique logistics needs.” The company’s expansion plans include strengthening its after-sales service network and advancing its technology infrastructure.
Sameer Tirkar, Head of Climate Infrastructure Investments, APAC, at responsAbility, expressed confidence in the investment: “With their focus on innovation and sustainable mobility, Euler Motors is well-positioned to drive meaningful progress in the EV space, particularly in the commercial and logistics sectors.”
For Tamil Nadu’s startup ecosystem, this development carries significant implications. As one of India’s leading manufacturing hubs with a strong automotive presence, the state stands to benefit from the ripple effects of such investments in the EV sector. Local suppliers and component manufacturers in Tamil Nadu’s auto clusters could potentially integrate into Euler Motors’ expanding supply chain, creating new opportunities for regional business growth.
The funding also highlights the growing investor interest in India’s EV manufacturing capabilities, particularly in states like Tamil Nadu that offer robust infrastructure and skilled workforce. The state’s established automotive ecosystem positions it favorably to capitalize on the transition to electric vehicles, potentially attracting similar investments in the future.
The company plans to utilize the funds for developing next-generation technology for commercial EVs, focusing on enhancing vehicle efficiency and expanding its service network. This technological advancement could create opportunities for collaboration with Tamil Nadu’s engineering institutions and R&D centers, further strengthening the state’s position in the EV innovation landscape.
Industry analysts note that this funding represents one of the larger debt investments in India’s EV manufacturing space, indicating a maturing market and growing confidence in the sector’s commercial viability. The combination of debt and equity funding demonstrates a balanced approach to capital raising, essential for sustainable growth in the capital-intensive automotive sector.
As India aims to accelerate its transition to electric vehicles, particularly in the commercial segment, investments like these play a crucial role in building the necessary infrastructure and technology ecosystem. For Tamil Nadu, which has been actively promoting electric vehicle manufacturing through policy initiatives and infrastructure development, such developments reinforce its position as a key player in India’s EV revolution.
