Euler Motors eyes 10-fold increase in revenue as it gears up to expand operations

Automotive technology start-up Euler Motors is eyeing a 10-fold increase in its revenue to $20 million (around Rs 146 crore) by the end of next fiscal as it looks to start sales of its electric cargo three-wheeler and expand operations in the country, a top company official said.

The Delhi-based firm, which expects to end the current fiscal with a turnover of around $2 million, currently leases its electric cargo three-wheelers to various partners, including e-commerce firms.

The company till date has leased around 200 such vehicles in Delhi-NCR. It is now gearing up to initiate sales of electric three-wheelers for retail customers around April this year.

"We closed FY20 with $1 million. This fiscal we would be closing around $2 million and over the next 12-14 months we are eyeing 10-fold increase in revenues to $20 million as we initiate the sales operations," Euler Motors founder and CEO Saurav Kumar said.

The company currently generates revenue from just leasing of its electric cargo vehicles.

"We have so far leased around 200 units of electric cargo three-wheelers and expect to scale it up to 10,000 units. This, with the start of sales of our first electric three-wheeler model, would help us achieve revenue targets," Kumar said.

Expansion in other parts of the country is also on the cards, he added.

"Over the next one year or so, we are looking to expand to various cities like Bengaluru, Chennai and Hyderabad," Kumar noted.

The company is also looking to scale up battery charging infrastructure as it aims to develop the entire electric vehicle ecosystem.

It already operates around 100 charging stations in Delhi-NCR and aims to scale it up to around 500 stations with expansion in other parts of the country.

"Over the next 3-4 years we expect to be present in around 20 plus locations with a couple of more products in the portfolio. It would involve a capex of around Rs 200-300 crore. For the current round of expansion we can manage from the capital raised so far," Kumar said.

Last year, the company had raised Rs 20 crore as part of its ongoing series A funding, led by Inventus Capital. Earlier, it had raised Rs 15 crore in 2019.

"Besides, we are in active conversations with investors to raise more capital sometime this year," Kumar said.

Euler Motors currently has units in Okhla and Faridabad where battery manufacturing and vehicle assembly takes place.

"We are doing around 30 vehicles per month and in the next one year we are looking at expanding that to 200 vehicles per month and for that we are scouting for places in Delhi-NCR where we can scale it up," Kumar said.

The company has been able to achieve a localisation level of 85 per cent, with only some electronic and battery cells coming from outside, he added.