EV Startup 3ev Raises 120 Crore To Boost Manufacturing

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EV Startup 3ev Raises 120 Crore in a major Series A funding round led by Mahanagar Gas Ltd, marking a pivotal moment for the electric mobility sector in India. Since this is MGL’s first investment in the EV ecosystem, the move signals a shift in how traditional energy companies are adapting to clean mobility trends. The round also includes participation from Equentis Angel Fund and Thackersey Group. With this infusion, 3ev plans to expand its manufacturing capacity, deepen supply-chain integration, and scale its charging, care and conversion services under its 3C division.

As the company continues to build momentum, the funding supports research in regenerative braking systems, solar-enabled cold-chain technologies and advanced materials. These innovations matter because last-mile delivery and small-format logistics remain key growth segments for electric three-wheelers in India. The Bengaluru-based startup has already doubled revenue to ₹54.7 crore in FY25 from ₹17.8 crore the previous year, while vehicle sales grew from 438 to 834 units. Although the industry remains competitive, 3ev has positioned itself with a strong battery-as-a-service model, a robust aftermarket ecosystem and financing solutions that make EV adoption easier for small fleet owners.

Since the Indian EV market is expected to grow at more than 40 percent CAGR over the next decade, this round gives 3ev the room to compete aggressively. It also helps the company scale production at a time when logistics operators, hyperlocal platforms and small transport fleets are actively shifting to cleaner vehicles. While global players are pushing advanced technologies, Indian manufacturers like 3ev are focusing on affordability, durability and real-world performance.

Overall, EV Startup 3ev Raises 120 Crore at a time when demand, policy support and investor interest are aligning. The company’s ecosystem approach may allow it to shape the next stage of last-mile electric mobility in urban India.

1. Introduction: Understanding the Significance of This Funding Round

EV Startup 3ev Raises 120 Crore at a moment when the Indian electric mobility landscape is shifting. Because new regulations, rising fuel prices and urban delivery demands are changing logistics models, the need for reliable electric three-wheelers is stronger than ever. Since investors are now eyeing scalable EV ecosystems rather than just hardware manufacturers, this round gives 3ev a solid strategic edge. The involvement of Mahanagar Gas Ltd is especially important because it shows how established energy players are moving toward clean mobility solutions. As the EV market expands, this partnership deepens investor confidence and positions 3ev as a key force in the next phase of transport electrification.

2. Founding Vision and Early Journey of 3ev

2.1 Origins of the Company

3ev began with a simple belief that small-format electric vehicles could redefine last-mile connectivity. The founders wanted to address the reliability issues that early EV models struggled with, particularly in logistics and local commerce. Since conventional vehicles carry high fuel and maintenance costs, they recognized an opportunity to build electric three-wheelers that were durable, cost-efficient and easy to maintain. Over the years, the company strengthened partnerships with fleet operators and retailers, which helped validate its early product versions.

2.2 Early Challenges and Market Fit

Because battery technology and charging infrastructure were still evolving when the company started, 3ev faced challenges in achieving the right balance between performance and affordability. However, the founders focused on ground-level testing and continuous iteration. As demand for greener vehicles rose among delivery companies, 3ev gained traction through pilot programs. Soon, the company’s battery-as-a-service platform became a key differentiator that reduced upfront costs for small businesses.

3. Details of the ₹120 Crore Series A Funding

3.1 Lead Investor: Mahanagar Gas Ltd

The fact that MGL invested ₹96 crore shows its intent to diversify beyond traditional gas distribution. Since it is entering the EV sector for the first time, the investment signals changing priorities among legacy energy companies. This shift supports India’s long-term electric mobility goals and gives 3ev the kind of backing that strengthens credibility with suppliers and customers.

3.2 Participation from Equentis Angel Fund and Thackersey Group

Equentis and Thackersey Group added strategic value because both have experience backing early-growth businesses. Since Equentis focuses on operationally strong companies, its participation highlights confidence in 3ev’s business fundamentals. Meanwhile, Thackersey Group’s ₹10.46 crore investment supports expansion in manufacturing and supply-chain readiness.

4. How 3ev Plans to Use the New Capital

4.1 Manufacturing Expansion

Because demand for electric three-wheelers is surging, 3ev plans to expand production capacity significantly. As the funding enables newer assembly lines, the company expects to reduce manufacturing time while improving build consistency. This helps it meet rising demand from logistics operators, hyperlocal platforms and retail businesses that are shifting to EV fleets.

4.2 Strengthening Supply-Chain Integration

Since EV components require high-precision sourcing and timely delivery, 3ev aims to create a more integrated supply-chain model. This involves deeper partnerships with battery suppliers, material vendors and technology partners. As a result, the company expects more predictable production cycles and reduced dependency on imported components.

4.3 Scaling the 3C Division

The 3C division Charging, Care and Conversions is one of 3ev’s strongest ecosystem offerings. While charging infrastructure is still developing in India, this division helps fleet owners adopt EVs without worrying about service gaps. Since conversions and aftermarket support remain crucial for logistics operators, 3ev plans to expand this unit across major Indian cities.

5. Competitive Landscape of India’s Electric Three-Wheeler Market

5.1 Understanding the Market Structure

The Indian electric three-wheeler segment has grown quickly due to rising delivery demand, fuel cost pressure and evolving urban transport needs. Since the market includes both organized OEMs and thousands of small unregistered players, competition is intense. Yet EV Startup 3ev Raises 120 Crore at a time when the industry is shifting from unstructured manufacturing to reliable, service-led EV ecosystems. This shift favors companies that offer technology, safety, charging networks and dependable after-sales support.

5.2 Key Competitors and Their Strengths

The direct competitors include Mahindra Electric, Piaggio, Altigreen, Euler Motors and Kinetic Green. These players dominate because of early entry, strong distribution and broader product portfolios. However, 3ev differentiates itself through its battery-as-a-service (BaaS) platform, which lowers acquisition costs. Indirect competitors include local vehicle assemblers and retrofitted e-rickshaw makers who serve the lower-price market.

Because many small manufacturers focus on low-cost assembly rather than long-term durability, buyers often shift toward premium and service-backed EVs once they scale operations. This trend supports 3ev’s strategy to deliver reliability and ecosystem support instead of only vehicle sales.

5.3 Why 3ev Maintains an Edge

3ev has built a tightly integrated model linking vehicles, financing, charging, and aftermarket care. Since logistics companies value uptime, the platform’s service reliability becomes a major advantage.

Furthermore, the company’s BaaS model solves battery degradation concerns, which remain a key reason why small businesses hesitate to adopt EVs. As EV Startup 3ev Raises 120 Crore, this broader ecosystem gives the company room to compete in a field where margins are thin and operational efficiency decides long-term winners.

6. Patent Dispute Context and Technology Differentiation

6.1 Why Patents Matter in the EV Sector

Electric mobility relies heavily on battery chemistry, thermal management, materials science and powertrain innovation. Because these technologies determine safety and performance, patents often shape market leadership.

While many EV startups in India rely on Chinese components, 3ev has invested in building its own IP around regenerative braking, lightweight materials and cold-chain EV technologies.

6.2 The Industry-Wide Patent Challenges

Several EV companies in India face disputes regarding motor controllers, battery design, and retrofitting methods. Since global suppliers often hold core patents, local manufacturers must innovate around them or license them at a cost.

However, 3ev has pursued early filings in safety architecture and battery management techniques. This approach gives it a cleaner foundation and reduces the risk of long-term legal hurdles.

6.3 How 3ev’s Early Patents Strengthen Its Position

Because 3ev has spent years validating its systems on real-world routes, its patents are based on field-tested data. This improves reliability and also allows the company to expand into cold-chain EV solutions, where temperature regulation becomes critical. As EV Startup 3ev Raises 120 Crore, these filings reinforce investor trust and give the startup a noticeable edge in technology-heavy use cases.

7. Challenges and Barriers in the Indian EV Sector

7.1 Supply Chain Dependence

India still relies on imported lithium cells, motors, and controllers. While some companies are localizing production, global price fluctuations create challenges. Since 3ev plans to strengthen supply-chain integration with this new funding, the company hopes to reduce these risks.

7.2 Charging Infrastructure Gaps

Although the government is pushing for public charging points, the ecosystem remains fragmented. This affects logistics operators, who need predictable charging options. Because of this gap, 3ev’s 3C division becomes essential, and the new capital accelerates its rollout.

7.3 Workforce and Training Issues

Electric mobility requires technicians trained in EV diagnostics, battery maintenance and controller systems. Since this talent pool is still small, manufacturers must invest in training. 3ev has already built internal programs, but scaling them across cities remains a challenge.

7.4 Customer Awareness and Conversion Barriers

Many small businesses still hesitate to shift from ICE vehicles. They worry about battery life, resale value and service quality. However, 3ev’s BaaS model and aftermarket support directly address these concerns. Over time, this model may reduce resistance to adoption.

8. Complete Company Backstory of 3ev

8.1 Early Roots and Idea Formation

3ev was founded with a clear mission: make electric mobility accessible for small delivery operators who struggled with high fuel costs. Since traditional three-wheelers required regular upkeep, the founders saw an opportunity to design an EV with predictable operating costs and lower downtime. They began researching vehicle architecture that suited India’s road and load conditions.

8.2 Prototype Development and Real-World Testing

The first prototypes went through continuous testing across Bengaluru and other major cities. As the team collected feedback from delivery riders, they learned that durability and battery swap convenience mattered more than design aesthetics. Because of this insight, they built a system where service support, financing and charging worked together.

8.3 Expansion into Fleet Partnerships

Once the startup saw its early adoption accelerate, it partnered with hyperlocal delivery brands, fresh produce firms, courier companies and cold-chain operators. Many of these businesses needed EVs with long operating hours and reliable BaaS support. As the company refined its platform, revenue and fleet size began to grow steadily.

8.4 Pre-Series A Growth Momentum

By FY25, 3ev doubled vehicle sales and nearly tripled revenue. The company targeted cities where delivery density was high, which helped optimize service coverage. Because the model delivered operational savings for fleets, customer testimonials grew stronger, attracting new partners.

9. Industry Growth Trends and Market Outlook

9.1 India’s EV Growth Acceleration

India’s EV market is projected to grow at 40 percent annually through 2030. Since delivery and logistics account for a major share of demand, three-wheelers are leading adoption. Government incentives, urban clean-air mandates and shifting consumer behavior further drive this growth.

9.2 The Role of BaaS and Aftermarket Ecosystems

Battery-as-a-service is becoming a preferred model for many fleet owners. It reduces upfront cost and removes battery risk. As companies seek predictable operating expenses, integrated aftermarket services help EVs gain acceptance even in smaller cities.

9.3 Why 3ev Is Well Positioned in This Landscape

EV Startup 3ev Raises 120 Crore during a period of rising EV demand. The company’s ecosystem approach aligns with where the industry is heading: integrated, reliable, service-backed mobility. Because growth depends on both product and customer trust, 3ev’s structured approach helps it scale faster than competitors who rely only on hardware sales.

10. Learning for Startups and Entrepreneurs

10.1 Build Ecosystems, Not Just Products

The EV market shows that offering a product alone is not enough. Founders must build an ecosystem of services, financing and support. 3ev’s success stems from this mindset.

10.2 Invest Early in Technology and Patents

Early investment in IP gives startups long-term protection and investor confidence. This becomes crucial in competitive sectors.

10.3 Use Customer Feedback as a Growth Engine

3ev scaled by understanding what fleet owners actually need. Startups should adopt the same ground-level validation approach.

10.4 Focus on Operational Reliability

Reliability builds brand trust faster than marketing. When customers depend on your service for their daily operations, consistency becomes your biggest asset.

About FoundLanes

At foundlanes.com brings sharp, credible and timely coverage of India’s business ecosystem. Since the platform focuses on emerging companies, funding moves, sector insights and founder journeys, it plays an important role in shaping public understanding of innovation. As EV Startup 3ev Raises 120 Crore, stories like this help readers track how clean mobility and technology-led businesses are reshaping the economy. TheStartupsNews.com continues to spotlight founders, investors and industry shifts across India and global markets, offering meaningful context for entrepreneurs, students and professionals following the startup world.