Automotive Startup – Dutch Uncles

Will Electric Scooter Startups Thrive in India Ahead of PM Modi’s Net Zero Pledge?

Shalmoli Sarkar — Mon, 03 Jan 2022 08:30:23 +0000

In the 26th UN Climate Change Conference of the Parties (COP26) held in Glasgow, Prime Minister Narendra Modi has pledged an ambitious goal for India to become net-zero or carbon neutral by 2070. Going carbon neutral means not adding to the greenhouse gases in the atmosphere.

The pledge although it received mixed reactions from various researchers and environmentalists regarding its feasibility, but is necessary to combat the pollution menace and minimise the country’s dependence on crude oil imports. According to the University of Chicago’s Air Quality Life Index, India is the most polluted country in the world, with more than 480 million people living in the Indo-Gangetic plains, where pollution levels are higher than anyone else in the world.

The two-wheeler pollution menace

It might seem like the four-wheelers, but the choked roads of India have nudged the metro city residents to own two-wheelers that contribute to maximum pollution. Moreover, owning two-wheelers in small towns and semi-urban areas is an aspiration. Also, what has fuelled the two-wheeler purchase is its gearless feature that has allowed more women to commute independently.

Two-thirds of pollution in major Indian cities are caused due to two-wheelers that release 30 percent of the particular matter load which is 10 percent more than the cars. This heavily calls for the need for electric scooters in India. But, is India ready to embrace them on its roads?

‘‘

According to the University of Chicago’s Air Quality Life Index, India is the most polluted country in the world.

The challenges to owning an electric scooter in India

Before, electric scooter startups launch their vehicles they need to think upon the below challenges –

Inadequate refuelling stations for electric vehicles

Unlike petrol and diesel vehicles, currently, India lacks recharging points for electric scooters or vehicles. Also, with regular usage, the performance of these vehicles tends to deteriorate that requires frequent charging.

The range dilemma

In a single charge, how many kilometers can an electric vehicle go? As with continuous usage, the battery performance lowers down eventually impacting the number of kilometres it can go within a single charge. Also, carrying a co-passenger behind reduces the distance it can travel at once.

More service stations

Although electric vehicles are built with lesser complexities that certainly does not mean they will never require a service station. There is a chance for electric vehicles to have short circuits. Therefore, electric vehicle startups should need to build an adequate number of service stations.

The price-conscious Indian

With petrol and diesel prices crossing the century, will the Indian consumers make the switch to an electric scooter? Although the government is pushing domestic manufacturing by incentivising local production, an Indian consumer is sceptical about the shift. A price-conscious Indian consumer is worried about the electric scooters built with cutting-edge technologies such as high-capacity lithium-ion batteries, sophisticated parts that will eventually make it expensive than a fuel scooter and higher will be the amount required for its insurance value.

What lies ahead for the electric scooter startups in India?

A scooter equipped with cutting edge technologies will indeed be expensive than a conventional fuel vehicle but the government’s launch of incentives towards manufacturing and increased availability of essential components through suppliers, are helping EV manufacturers to produce affordable electric vehicle scooters in India.

In addition to pushing domestic production, under the ‘Make in India’ initiative India is also scaling up its domestic lithium-ion battery manufacturing which comprises the most cost of an EV and aspires to become the hub of battery manufacturing. Also, there is an increased interest of foreign investors to fund electric scooter startups in India. Such initiatives from the government and funding interests from the investors are painting a promising future for providing affordable EV solutions for Indians that will have a lower cost than compared to fuel-driven vehicles.

The post Will Electric Scooter Startups Thrive in India Ahead of PM Modi’s Net Zero Pledge? appeared first on Dutch Uncles.

Electrify Your Future, Electric Vehicle Innovation Challenge

Anju Nambiar — Tue, 10 Aug 2021 10:35:08 +0000

Electric vehicles are the future of sustainability and an answer to the rising fuel prices in the country. The government is working hard to promote entrepreneurship in this segment. Ola’s newly launching EV is part of the Electric Vehicle Policy 2021. The EVangelise Challenge is also a part of these efforts.

What is the EVangelise Challenge?

EVangelise is an Electric Vehicle Innovation Challenge organised by iCreate (International Centre for Technology and Entrepreneurship, India’s leading innovation-based start-up incubator) that’s occurring in conjunction with ‘Start-up India’. This challenge is designed for the Electric Vehicle Industry and is meant to encourage innovations in the two and three-wheeler segment in India. It is an international event that will unite innovators, the EV industry, institutions and government bodies.

Everything you need to know about EVangelise

Dates and deadlines

This is an annual event spanning a duration of 7 months. Application submissions were opened on the 17th of July and the deadline for submission is the 15th of January, 2022. The winners will be announced next year on the 22nd of February 2022.

Application process

Start-ups wanting to apply for participation need to visit the official ‘EVangelise’ website and submit your application by filling out a simple form containing details about your start-up along with contact information.

Eligibility criteria

Entrepreneurs who are offering breakthrough innovations for the EV Industry and addressing key problem statements in the industry are invited to participate in the challenge. College students, independent innovators, and start-ups are eligible for the event. Key stakeholders from the Automotive industry including Investors, Mentors, Corporates and start-ups in the Ideation, Validation, Early Traction, and Scaling stages fulfil the eligibility criteria.

Benefits for participants and winners

A number of fiscal and non-fiscal incentives are up for grabs for participants and winners. Fiscal incentives include cash prizes for the top finalists in three key start-up stages (Idea, Design, and the Build stage). Non fiscal incentives include organising Bootcamps, Masterclasses, and Tech Mentoring by iCreate and Industry experts.

Participants that endure to the final stage of the event get the opportunity to participate in an International EV race at Kevadia, Guajarat in a landmark setting before the Statue of Unity, the world’s tallest statue. Finalists also get to pitch their start-ups to an exclusive jury, and get access to incubation support, market connections, and mentorship. Finalists also get to showcase their innovations at the EV Expo.

‘‘

The deadline for application submission is the 15th of January, 2022. The winners will be announced next year on the 22nd of February 2022.

What’s in it for me?

Through the event, Start-up India in partnership with iCreate wants to recognise the next-gen innovators in EV while promoting technology tourism in the country. Assured cash prizes for winners amount to INR 88.5 lakh. The winners also stand to gain incubation support worth INR 50 lakhs. This challenge is aimed at bringing together India’s leading EV companies and sub-component manufacturers to facilitate partnerships and collaborations that will boost the industry.

iCreate is a part of the Gujarat State Government that promotes growth and entrepreneurial capital and has extended support to multiple EV projects. Start-up India is a great platform from where they can improve awareness about the event and also a forum that’s working for a common cause. This event is one of many efforts by the government to improve adoption of sophisticated, energy-efficient, and sustainable transportation solutions for the Indian market.

The post Electrify Your Future, Electric Vehicle Innovation Challenge appeared first on Dutch Uncles.

Why is Krishnagiri Ola’s Choice to Build the Largest Two-Wheeler Mega-Factory in the World

Anju Nambiar — Tue, 13 Jul 2021 03:35:13 +0000

Electric 2 and 3 wheelers are the next revolution in sustainable transport. These are not new concepts and have been around for a while. They are slowly receiving more spotlight as their performance is now matching that of fuel vehicles. State Governments are encouraging Electric Vehicle manufacture with the FAME (Faster Adoption and Manufacture of Hybrid and EV) II scheme. Ola, the ride-hailing company has stepped into the EV business with their state-of-the-art production facility at Krishnagiri in Tamil Nadu.

Why Krishnagiri?

The Government of Tamil Nadu has already signed MoUs (Memorandums of Understanding) with several EV (Electric Vehicle) makers, and Ola is one of many. Ola has signed this MoU valued at INR 2400 Cr prior to the land acquisition at Krishnagiri. Spanning a total of 500 acres in area, the location was just empty rock land for the longest time before becoming Ola’s base for its flagship project. The factory site is located near Krishnagiri in Tamilnadu. Tamil Nadu is one of the fastest growing states with a conducive policy environment for cutting-edge technology development including manufacture of EVs.

Tamil Nadu Electric Vehicle Policy 2019

Tamil Nadu fosters an automotive ecosystem. 35% of India’s overall auto components production occurs in the state of Tamil Nadu. Tamil Nadu’s electric vehicle policy 2019 offers incentives for vehicle makers and suppliers investing INR 50 Cr. The state is targeting an investment of INR 50,000 Cr in EV manufacture.

Incentives for EV Makers

EV makers can enjoy full reimbursement of state GST on vehicle sales. They will also receive capital subsidy, 100% electricity tax exemption, and 15-50% subsidy on land cost.

About the Project

Ola’s electric scooter factory project titled ‘Ola Future Factory’ will be commencing its first phase of operations. With 10 M man hours allocated for the factory construction, it will have an annual installed capacity of 10 M electric scooters. The mega two-wheeler factory is also the world’s largest 2W factory.

5000 Robots

This factory is set to be India’s most-automated plant which will have about 5000 operational robots alongside automated guided vehicles in full-capacity.

Focus on Sustainability

Ola’s electric vehicle arm will contribute to India’s initiatives towards green mobility. They will supply their EV to the CESL (Convergence Energy Services Ltd) for this cause. Ola’s scooters will be eco-friendly and will be an answer to rising petrol and diesel prices in the country. The Future Factory will employ sustainable energy practices for production and will reduce its overall carbon footprint when they step up on production capacity. The factory will use solar and renewable energy for manufacturing and rely on carbon-negative operations.

100 acres of Forest Cover

The entire factory will be high on sustainability with 100 acres of forest cover around it and 2 acres of forest cover within the factory.

‘‘

The Government of Tamil Nadu has already signed MoUs (Memorandums of Understanding) with several EV (Electric Vehicle) makers, and Ola is one of many.

What’s in it for me?

There is tough competition in the EV manufacturing sector and even Ola will not be spared from the heat. But Ola is aggressively expanding in the space since the EV sector in India is growing rapidly although currently its still at a fledgling stage. The demand for EV vehicles is strong especially in India which is the world’s largest two-wheeler market. Ola has realised the potential at the right time and quickly moved into automobile manufacture as a separate wing.

The recent amendments to the FAME II electric vehicle policy will be beneficial for EV start-ups in the country. As per the amendments, electric two wheelers can benefit from a demand incentive of INR 15000 per kWh. Also, there is a 40% cap on incentives on the total cost of the vehicle. Battery powered two-wheeler start-ups who comply with the eligibility criteria of 80 km minimum range and a top speed of 40 km/h can avail subsidy under the FAME II scheme.

The post Why is Krishnagiri Ola’s Choice to Build the Largest Two-Wheeler Mega-Factory in the World appeared first on Dutch Uncles.

How Spinny Pivoted to Take on Industry Mammoths in the Used-Car Market

Varsha Singh — Wed, 16 Jun 2021 02:35:03 +0000

People have been looking for a suitable platform to purchase a used car for a long time. Earlier people used to buy second-hand cars by directly contacting the owner. This was indeed a cumbersome process, as coming in direct contact with the seller was quite a difficult task and people had to get involved in the bargaining process. The procedure of buying a used car is laborious and overly complicated. Independent sellers offer a wide range of rates and services to entice people to buy cars of dubious quality. Choosing from a pool of mint and lemon autos, for example, has a high probability of bad selection for a layperson. That’s where Spinny comes in. Nowadays, with the boom of e-commerce and e-retail platforms, we have certain platforms like Spinny which are making the buying and selling of a car much more convenient. Spinny is a new age platform that enables trustworthy and hassle-free transactions in the used-car market.

Spinny’s Origin Story: Getting into the Market

Having a car is a dream for every Indian family but due to financial restrictions, many people go for buying used cars. In June 2015, Niraj Singh, Ramanshu Mahaur, Ganesh Pawar, and Mohit Gupta embarked on a mission to develop Spinny in order to sift out the quintessential problems of difficulty and scepticism and break down the arduous process into a one-click solution. Spinny is an innovative way to purchase and sell used cars on the internet as well as bring lucidity and accountability to the used automobile market. Removing superfluous expenses, lowering paperwork, and terminating all inconveniences replaces the time-consuming process of buying and selling cars. The startup started in Gurugram and is currently operating in six cities including Delhi NCR, Hyderabad, Chennai, Bangalore, and Mumbai. Niraj Singh – an IIT graduate and the current CEO – invested $500,000 from his own fund. Today many investors have invested in the company and have made a profit of around Rs. 418 crores. Niraj recognised the need to provide a quality experience for individuals buying used automobiles and planned to construct a simple and clear platform to gather information and purchase a car.

The asymmetry of information available in the process of used car purchases has been a key roadblock.The used car market is highly unstructured with independent dealers and curbsiders dominating a large chunk of the market. Only 3-4 per cent of buyers are satisfied after buying used cars. Spinny is all about providing openness and efficiency to the used automobile purchasing and selling experience. According to the founders, consumers can use the platform to hunt for not just different varieties of cars, but also other value-added services. This covers services such as automotive inspections, test drives, registration transfers, and giving auto warranties to customers, among others.

‘‘

Spinny is a new-age reseller platform that specialised in facilitating the sale and purchase of used cars with their USP being, complete transparency.

How is Spinny different from all other companies?

There are several business models in the used car industry. There are auction-based and classified companies like Cars24, CarDekho, OLX, and Quikr; franchises and companies like Mahindra First Choice and True Value. Then there is Droom, an online marketplace to buy and sell used vehicles. All these companies are seller-based platforms that focus mainly on selling cars. Spinny on the other hand is a buyer-based platform that focuses on buying good quality used cars and then selling them at a reasonable price.

Not only is it one of few companies to continue with its money return policy during the time of COVID, but also one of the first companies to adopt a full contactless dealing management and providing home deliveries. The Spinny Star Rating engine employs a unique algorithm to calculate a used car’s rating based on inspection data. The goal of this grade is to give you a fast idea of the vehicle’s genuine condition. Every car listed on Spinny has been certified by our in-house vehicle professionals and is covered by a one-year warranty that includes the engine, transmission, electrical systems, and suspensions. The cost of the warranty is included in the listing price of automobiles with the Spinny Assured tag, but if you want to include the warranty in your automobile purchase, you must pay for it separately. They initiated a set of features to make buying a car an entirely hands-off experience. To solve the liquidity shortage that many people are experiencing during these uncertain times, making owning a car more realistic and cost-effective than renting or subscribing to one. One of the distinguishing features between Spinny and other platforms is Spinny360.

Thanks to Spinny360, customers now can see the interior and exterior of any vehicle in the inventory online exactly as they are in person. This will finally assist them in making a clear selection and will also provide them with a clear picture of the vehicle’s condition. The feature uses a state-of-the-art studio with high-definition cameras that capture detailed images of the car. In addition to all of these, It seems like with Spinny coming into the market, one could observe that there is more popularity of buying used cars as compared to new ones and according to sources, on each new car, three used cars are getting sold.

Rise of Spinny during COVID

Previously, people would only buy new cars to increase their economic value, but as time has passed, this has changed. There is a shift towards buying used cars. Around 65 per cent of India’s population is under 35 years and for young buyers, buying a second-hand car is a much more sensible decision to be prepared for uncertainties in the future. Spinny saw a 20 per cent increase in sales over the previous year, owing to the fact that cars are now seen as a need rather than a lifestyle choice. Even with the lockdown in place, Spinny had sold over 6000 cars by October. Spinny had seen a 20 per cent rise in demand in 2019 compared to the previous year, with the majority of the credit going to its young customer base. Spinny targeted the young buyers to give them a way to have good quality used cars and today around 80 per cent of their buyers are under the age of 35. The cultural stigma which is there regarding used cars is somehow coming to its end and that helped them in the growth during the festive season as well. Even during the time of COVID when we suffered an economic breakdown, Spinny sold over 5,000 used cars last year with the total number clocking over 9,100 units. Despite liquidity concerns, they sold a total of 9,100+ cars in 2020, owing to an increased network and more clients wanting safe personal transportation. Regardless of the lockdown, they sold almost 2,700 automobiles between July and August. They reached 5,000 automobiles in 2019 and were able to meet their pre-covid goal for 2020.

Shifting of the working model

Before Spinny, there were already many companies that were providing used cars but to be in the market, one needs to be unique and creative. Earlier, Spinny used to follow a simple procedure of selling cars where they check the quality of the car then connect the buyer and the seller. This procedure had some trust issues, as later, the buyer could pull off the deal or the seller. It was very necessary to have some changes in the structure so they opted for a new model for the dealings.Now, the seller first contacts Spinny and they offer a fair price for the car, and if the seller agrees, the car will go through a quality test of around 200 factors before getting on board on their app and all the paperwork is done before taking custody of the car. Then after servicing, polishing, and waxing of the car, the car is put on board for selling with all the basic details of the quality of the car. Spinny’s idea is to make buying a used car as simple as buying a new car. Spinny tries to give each and every accurate detail of the car to give the buyer a clear idea before buying. They also provide at which hub the car is parked so that the buyer can directly go to the hub to check out the car. But the deal is not over after buying a car, Spinny tries their best to maintain a good relationship with the customers even after the deal as former customers could refer many other people to try buying a car from Spinny. In order to give an even better experience than a brand new car, Spinny gives a full tank of fuel to all their customers. The main issue which one usually has while buying a second-hand car is the quality of the car and its value for money. The main focus of Spinny is to give a quality car and that is why it does not negotiate the price with the buyer or the seller.

The Money behind the Machine

The five-year-old India startup has concluded its Series C funding round, receiving $65 million from General Catalyst and others in Silicon Valley for a post-money valuation of $350 million. The new round was led by General Catalyst of Silicon Valley, with participation from Feroz Dewan’s Arena Holdings, Think Investments, and current investors Fundamentum Partnership (supported by tech veterans Nandan Nilekani and Sanjeev Aggarwal) and Elevation Capital. The round, which brings Spinny’s to-date raise to more than $120 million, valued the startup at about $350 million, up from about $150 million a year ago. Spinny changed its business strategy from customer-to-customer to full-stack, where it buys, refurbishes, and sells used cars. Every month, the platform sells around 1,500 cars and continues to expand at a consistent rate of 15-16 per cent month after month. Spinny, with its 900 people in nine places, with ambitions to expand to six more by 2021. It now sells used cars in the Rs 4-8 lakh range, but it intends to expand its offers to include both lower and higher-value vehicles. The extra funds will be used to improve customer experience, grow into new markets, increase technology and product capabilities, establish new business categories, and establish cross-functional teams.

‘‘

Being successful as a brand in the used car market is a tough business as you are essentially working with run-down products. Therefore, Spinny makes sure all cars go through thorough checking before being sold.

What Does the Future Hold for Spinny?

Right now, Spinny is working in a few cities like Noida, Delhi (two hubs), Gurgaon, Pune, Hyderabad, Bengaluru, Mumbai, Chennai. Their plan is to expand their business to Kolkata and Ahmedabad soon. After their great sale in 2020, the momentum and confidence are obviously high and they would like to keep the momentum going. According to the study, the used car market is set to go around 7.2 million units by 2022 as now people are opting to buy more used cars. But to maintain the reputation and the legacy, Spinny needs to maintain trust and transparency with their customers. With so much increase in sales last year, Spinny is no longer a young company and has to compete with established brands like Cars24, CarDekho, etc. Spinny has several plans in the works for the future. The first goal is to expand into as many places as possible by the end of 2021, with the team focusing on providing more high-quality cars.

The post How Spinny Pivoted to Take on Industry Mammoths in the Used-Car Market appeared first on Dutch Uncles.