EVage start-up raises $28 million from US venture capital firm RedBlue Capital

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Startup EVage, which builds electric delivery vans for e-commerce and logistics companies including Amazon.com Inc, has raised $28 million from US venture capital firm RedBlue Capital, announced on Friday the society.

The seed capital will help EVage complete its factory in northern India and begin delivery of “thousands of vehicles” on order, Inderveer Singh, the company’s founder and chief executive, told Reuters.

Singh did not comment on the number of orders, but said he was working with companies including Amazon to design and test his one-tonne electric van that he will launch this year.

Like electric vehicle (EV) makers Rivian in the US and Arrival in the UK, EVage is betting on a global shift of delivery companies towards cleaner mobility.

In India’s nascent EV market, Amazon aims to have 10,000 EVs for deliveries by 2025, while Walmart Inc’s Flipkart plans to have 25,000 EVs by 2030. EVage is the first company to build an electric van in India from scratch.

“The miles traveled by electric vehicles in India will explode with this change in the movement of goods, and the electrification of this segment is a huge opportunity,” said Olaf Sakkers, general partner at RedBlue Capital.

Compared to the West, India and markets like Southeast Asia, Africa and Latin America have unique requirements in terms of vehicle price and capacity, road conditions and weather, said Sakkers, whose company invests in mobility start-ups globally.

“We see EVage more as a Rivian and an Arrival for developing markets,” he said.

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