EV parts maker Vecmocon raises $5.2 million in funding led by Tiger Global, Blume Ventures

Interestingly, this is the fourth EV startup Tiger Global has invested in and the second this year after backing battery swapping startup Battery Smart in June. The deal comes at a time when venture capitalists are increasingly looking at the EV space – a sector they have largely stayed away from – for investments as the larger tech ecosystem is seeing a downturn, as ET reported on August 19.

The New York-based investment firm Tiger,
which is aiming to close a $6-billion fund, has told its sponsors (limited partners) that it will increasingly look to make early-stage bets with India being in focus.

Vecmocon, founded in 2016 by Peeyush Asati, Adarshkumar B and Shivam Wankhede, said over 100,000 EVs will be made using its parts by the end of the year. The Delhi-based company manufactures components that have software embedded in them making the vehicle internet-enabled.

This can constitute up to 30% of an EV’s total cost. Its products include a motor controller, vehicle intelligence module, battery management system and charger – all of which are critical in an EV. Vecmocon’s parts are already used in about 5,000 vehicles, the company said.

“We are impressed with the deep commitment and progress that Peeyush, Adarshkumar and Shivam have made to solve long-term problems in India’s EV industry. We are excited to partner with them as they build a high-quality global automotive tech company to support the adoption of EVs,” said Connie Lee, partner at Tiger Global.

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“EV mass adoption is not a product story but an ecosystem story. Robustness, reliability, and service are at the core of this story which we are building,” said Asati, cofounder and chief executive officer of Vecmocon. “With our state-of-the-art solution, and data-centric approach, we are working with the mission to deliver a truly smart, connected, and reliable platform to the world. We plan to utilise this fundraise to invest primarily in team and tech.”