Evate, founded in 2023 by Vijay Madhusudan and Amit Shahani, aims to accelerate global EV adoption by retrofitting internal combustion engine (ICE) vehicles, particularly auto-rickshaws.
Both founders are IIT Madras graduates, with diverse professional backgrounds, including roles at Marico, Hitachi Payment Services, Schlumberger, and Enfrien Technologies.
Challenges in EV Transition: While the shift to electric vehicles is accelerating, it poses challenges such as rapid obsolescence and abandoned EVs, leading to environmental and urban planning issues. Evate addresses these challenges by repurposing and retrofitting existing vehicles to reduce waste and congestion.
Evate’s Approach: Evate focuses on retrofitting ICE vehicles, especially auto-rickshaws, with EV components to make them electric. This approach promotes wider EV use, reduces new vehicle production, and contributes to a sustainable urban environment. The startup offers a mobile app connecting drivers with retrofitting specialists, financial assistance, and guides them through the retrofitting process.
Retrofitting Process: Retrofitting involves converting existing petrol or diesel vehicles into electric ones by replacing the engine with an electric motor and high-voltage battery. Evate’s app facilitates the retrofitting process, ensuring safety and quality standards. The startup collaborates with auto driver associations and OEMs involved in retrofitting.
Government Support: Indian state governments have recognized the benefits of retrofitting and developed policies to regulate the process. For instance, the Delhi government allows diesel vehicles over 10 years old to continue use if retrofitted with an EV kit. Authorized retrofitment centres ensure compliance with safety and quality standards.
Unique Selling Proposition: Evate’s unique selling point is its ability to underwrite emerging technologies, offering loans for products perceived as risky by traditional financial institutions. The startup generates revenue through loan products, earning margins on interest rates and processing fees. Ancillary services, such as re-registration, tracking, and maintenance, also contribute to revenue.
Financials and Funding: Evate has raised Rs 35 lakh in a pre-seed funding round and aims to raise $3 million in the upcoming round. The startup targets disbursing 10,000 loans by the end of 2024, with a focus on sustainable growth.
Industry Growth: The Electric Vehicle Powertrain Market is projected to grow from $188.19 billion in 2024 to $425.10 billion by 2029, indicating a CAGR of 17.70%. Evate aligns with the growing trend of EV adoption and contributes to a circular ecosystem for sustainable transportation.