Magenta Mobility eyes $50 million fundraise to supercharge EV expansion

“The company will raise anywhere between $35-50 million to fund its expansion plans," one of the people cited above said, adding that revenues for FY26 are projected at ₹125-130 crore. Talks are reportedly at an advanced stage, and the final deal is likely to bring two new investors onto the cap table, the person added.

“The proceeds from the funding will be used towards its expansion plans including its EV (electric vehicle) fleet and charging infrastructure," the other person cited above said.

Both the people spoke on the condition of anonymity as the discussions are still private. Magenta and Kotak did not respond to Mint’s requests for a comment.

This comes less than a year after Magenta raised around ₹100 crore in debt and equity in March. In 2023, the company closed a $22 million Series A round led by bp Ventures, the venture arm of British Petroleum which is headquartered in London, and Morgan Stanley India Infrastructure.

Founded in 2018 by Maxson Lewis, Magenta started as a public EV charging provider before pivoting to all-electric logistics. The company claims to be one of India’s largest providers of electric mobility for last-mile delivery, operating in seven cities including Bengaluru, Delhi, Mumbai, Mysuru, Hyderabad, Gurgaon, and Noida. It has also partnered with Jio-bp, part of bp’s joint venture with Reliance Industries, as the exclusive EV charging provider for its fleet, which the company plans to expand to 4,000 three- and four-wheel EVs.

Magenta’s revenue from operations rose to ₹35.51 crore in FY24 from ₹11.84 crore in FY23, while losses widened to ₹47.91 crore from ₹41.68 crore, according to an Inc42 report.

The company faces competition from EV logistics startups like Zypp Electric, Alt Mobility, and Fyn Mobility, as well as charging infrastructure providers such as ChargePoint and ABB E-Mobility. Some rivals have also raised funds recently, with Zypp Electric securing $6.5 million earlier this year and Yulu receiving ₹25.7 crore from Canadian auto-parts manufacturer Magna International in July.

Investor tailwinds

Broadly, investor enthusiasm around EV mobility startups is driven by a convergence of policy push, economics, and platform thinking.

“In India, the government’s sustained incentives, combined with tightening emission norms and rising urban congestion, have created a structurally favourable environment for electric mobility — particularly in the last-mile and intra-city segments where utilisation is high and unit economics are more compelling," said Shreevardhan Sinha, senior partner at Desai & Diwanji.

He further explained that startups like Zypp and Yulu are attractive to investors as their propositions combine hardware, financing, battery-as-a-service, fleet management, data analytics and, increasingly, partnerships with e-commerce and logistics players. “This integrated approach significantly improves capital efficiency and creates stronger long-term moats."

While the biggest growth opportunities lie in last-mile delivery, urban logistics and shared mobility which are still in early stages, other emerging areas include enabling layers like battery swapping, charging infrastructure and fleet-as-a-service that are also important sub-segments, he said.

EV mobility startups are also most likely to take market share in certain segments from incumbents in use cases where operating economics strongly favour electric over ICE vehicles, such as last-mile logistics, two- and three-wheeler shared mobility, and urban delivery fleets.

Sinha said incumbents in these areas face a structural disadvantage because many of their business models, cost structures and legacy assets were built around internal combustion technology although they continue to benefit from deep distribution networks, manufacturing scale, and access to capital.

“We are likely to see instead is a hybrid landscape: collaborations, acquisitions, and strategic investments by incumbents into startups, as they seek to hedge against technological disruption and accelerate their own transitions," he said, adding that the startups that will successfully gain and retain market share are those that move beyond being pure mobility providers and start functioning as full-stack mobility infrastructure companies — combining vehicles, energy, data, and financing into a coherent ecosystem.

Against this backdrop, India’s e-mobility sector is rapidly growing. A 2025 EY report highlighted that the $62 billion energy transition market has increasingly focused on electric vehicles and related infrastructure, with e-mobility accounting for 49% of deal volume in 2024, up from just 6% in 2017.