“The product is at the core of everything, and we want to get it right. Keeping that as a crucial focus for the next five to six months, with this funding, we will double down on our efforts in testing, validation and engineering improvements,” cofounder and chief executive Anoop Srikantaswamy told ET.
Founded in 2023 by Srikantaswamy and Ravi Kulkarni, the Bengaluru-based startup will offer a range of heavy-duty electric tractors, which, according to the company, have reached price parity with diesel alternatives.
“Price parity is the core problem we are solving, considering that tractors are a price-sensitive segment, and we have achieved it through several innovations, including battery technology integration, among others,” he said.
The business-to-business (B2B) startup has partnered with three players in India and East Africa to sell its tractors, which are set to launch in the next three to four months.
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According to Srikantaswamy, while EV startups adding value do not face challenges in attracting capital, the situation is no longer the same as it was in 2021 and 2022.“I think it is becoming increasingly difficult to raise funds in this environment because investors are not only looking at disruptive technologies but also at your fundamentals, such as unit economics, your route to profitability, and all of that,” he added.
On December 26, ET reported that funding for India’s EV sector has nearly halved between 2022 and 2024. According to industry executives, the decline was attributed to policy shifts and declining sales growth, prompting investors to push for improved unit economics and profitability in companies before making further investments.
Commenting on the investment, Kunal Khattar, from AdvantEdge Founders, said, “AdvantEdge’s fund thesis centres around accelerating the transition from the internal combustion engine to electric vehicles and we see electric tractors as the next category since they are 50 percent cheaper to own and maintain.”
“We believe we are at the right intersection point for electric tractors given the technology and business model evolutions. At Micelio Fund, we aim to back disruptive and sustainable innovations that push the envelope of clean mobility and Moonrider feels right at home,” said Shreyas Shibulal, founder, Micelio Fund.
