More Funding for India-Based All-Electric E-Mobility Start-up
Magenta Mobility has announced $22 million in funding to expand last-mile delivery services in India using all-electric vehicles.
Based out of Navi Mumbai in India, Magenta Mobility has announced $22 million in Series A funding to expand its last-mile delivery services using its fleet of all-electric vehicles. The funding comprises $11 million each from Morgan Stanley India Infrastructure and BP Ventures and will help the company expand its operations to new metropolitan markets within India. The recent round of funding brings total funding for the company to $33.7 million.
Magenta Mobility boasts over 30 customers in the Indian e-commerce and grocery delivery space, including big names like Flipkart, Udaan, and Amazon.
Magenta Mobility three-wheel EV delivery trucks. Image used courtesy of Magenta Mobility
All-Electric Delivery Services
Founded in 2018, parent company Magenta was initially formed to help develop EV charging infrastructure solutions for the Indian market. But in 2021, the company identified an opportunity to expand and began offering all-electric mobility services in the city of Bengaluru under the Magenta Mobility brand.
Its first mobility services were targeted toward on-demand, passenger ride services using traditional four-wheel EVs (think Uber with EVs), but the company soon pivoted to transporting cargo, groceries, and other goods via three-wheeled electric delivery trucks.
Delivery services initially started with last-mile services for e-commerce and grocery delivery companies but soon expanded to include first-mile, mid-mile, and reverse logistic solutions. First-mile services help transport products from the farm, or factory, to warehouses. Mid-mile services get goods from warehouses to fulfillment and distribution centers, while last-mile services deliver the final product (groceries, etc.) to the end customer.
First, last, and mid-mile mobility services. Image used courtesy of Magenta Mobility
Zero Carbon Emissions
Zero carbon emissions are key to Magenta Mobility’s EV last-mile and other delivery services. Along with the rapidly growing demand for e-commerce, grocery, and other home delivery services, the Indian government is incentivizing the private sector to help meet its stated goals of reducing carbon emission levels by one-third by 2030.
In addition to carbon emissions, air quality remains a challenge in many urban areas in India. As of 2022, Delhi was known as one of the most polluted capital cities worldwide. Over the years, the Indian government has launched many initiatives to improve local air quality. If successful, Magenta Mobility’s fleet of clean EVs perhaps offers a transportation services model that can assist India in meeting its air quality goals.
Magenta Mobility’s mission aligns with lead investor BP Venture’s stated focus of building new energy value chains that expand BP’s core businesses and help it transition to a lower carbon future. Among others, advanced mobility solutions are an area of interest for BP’s investment fund, and the Magenta Mobility investment is the second such investment for BP in the Indian e-mobility market.
Zero-emission mobility services improve air quality. Image used courtesy of Magenta Mobility
Electric Vehicle Charging Solutions
Following the legacy of the company’s founding, Magenta Mobility continues to offer EV charging solutions and has strategically incorporated this charging infrastructure to support its EV mobility services.
EV charging infrastructure supports mobility services. Image used courtesy of Magenta Mobility
Magenta’s ChargeGrid is a series of single and multi-port Type 2 charging solutions that can deliver up to 7.4 kW of AC power for electric vehicle charging. As a Type 2 charger, power is transmitted through the EV onboard charger, which is rectified and converted to high-voltage DC for charging the EV’s lithium-ion battery pack.
ChargeGrid EV charger. Image used courtesy of Magenta Mobility
Planning for the Future of E-Mobility
Magenta Mobility currently operates a fleet of 800 of its three-wheeled EV cargo trucks, delivering goods throughout the metro regions of Bengaluru, Delhi, Mumbai, Mysuru, Hyderabad, Gurugram, and Noida.
With the new funding, the company plans to expand its service to eight additional cities and grow its EV delivery fleet to more than 4,000 vehicles over the next couple of years.
To date, the company claims to have completed nearly 70 million deliveries with a total of over 6.4 million delivery kilometers driven. Currently, about 60% of these delivery kilometers support the fast-growing Indian e-commerce market.
Magenta largely sources its three-wheeled EVs through local and international e-OEM partners, including Tata Motors, Mahindra, Piago, Omega Seiki, and Euler.