Electric vehicles have been in the news in the city for some time now. In India, we are now at a stage where there are innumerable EV Brands in the market in almost all categories. While proper infrastructure is still a bit ahead for mass adoption of electric vehicles in the future, OEMs are committed to launching new products, technologies and innovations in this area. Established auto brands have all the means to develop EVs, but startups need help to get things started. stride one There is a company that finances such players, thus giving them the means to step into this electric revolution.
We spoke to the co-founder of Stride One, Ishpreet Singh Gandhi To understand what their company looks for when investing in a business and how they view the EV sector in the years to come. He believes, “the development of EV Infrastructure One of the key requirements for India’s EV dreams. development of an effective charging infrastructure The key remains to unlock the potential for EV adoption in India. The sector is witnessing diverse innovative solutions such as battery recycling and battery swapping to ensure long-term sustainability and meet the underlying market challenges of India’s EV sector.
The far reaches of the EV field
There’s more to the EV space than meets the eye. While the general public may be attracted towards passenger cars and two-wheelers, there are many more areas where EVs are being used. “We are also analyzing several areas where e-commerce and delivery aggregators are adopting electricity as a sustainable and efficient fuel alternative to run their operations,” Ishpreet said.
Funding Challenges for the EV Sector
It’s no secret that electric vehicles run on a completely different principle than conventional internal combustion engine-powered vehicles. This difference also holds when it comes to building an EV-focused company. Ishpreet explained, “EVs are a completely new sector and are subject to rapid expansion, these assets pose unique financing challenges. For example, while CapEx funding an EV firm, one of the most significant challenges Calculating the estimated residual value of assets becomes a major hurdle for traditional banks when underwriting EV firms.However, the sector has now embraced new-age VCs and financials from options such as venture credit and supply chain financing solutions. Support has been renewed to help them overcome these traditional challenges, while the same problem does not exist when underwriting ICE vehicle companies through traditional financial bodies.”
“Stride has come forward as the partner of choice to help address such challenges and aims to become a leader in the domain by providing ecosystem-level financial solutions to the EV sector.”
working towards a bright future
We asked Ishpreet what kind of ventures his organization is tackling. He said, “We are collaborating with component manufacturers who are developing battery and charging infrastructure, as well as with battery refurbishing companies etc. Additionally, we are also partnering with EV players who are involved in EV fleet management such as Software and technology are providing value addition, charging as a service, ride-hailing etc.”
Stride One has already partnered with ventures like BlueSmart, Lohm and MoeWing and is targeting to invest Rs 100 crore this year. About 60 per cent of the dedicated amount has already been invested. When asked about the major hotspots for EVs across the country, Ishpreet said, “The EV mobility segment is growing in Delhi NCR with players like BlueSmart. According to market estimates, 143 electric vehicles were registered daily in Delhi till June 30. Charging infrastructure is booming across Bangalore. BESCOM is operating 136 EV chargers in Bengaluru city and has recently invited tenders to set up 1,000 EV charging stations across Karnataka in a PPP model.
Additionally, the company is looking to infuse another Rs 20 crore into the EV segment in the next 2-3 years.
The Automotive Components Manufacturers Association (ACMA) recently spoke about its intention to integrate non-traditional players such as telematics companies and battery makers with the introduction of EVs. This can be seen as another step towards the transition of our country to green mode of transport. Ishpreet said, “Such partnerships can enable active participation in trade promotion, technology up-gradation, quality enhancement and collection and dissemination of information across multiple stakeholders. In addition, innovative EV solutions such as battery recycling etc. from such associations It is expected to help in accelerating the contribution of Indian OEMs in implementing EVs that meet the long-standing challenges of the EV sector in India. Participation in international trade fairs, sending business delegations abroad and publications on various topics related to the EV industry Activities like evacuation will get welcome support from such cooperation.
finding the right match
We also inquired about the process for contacting potential startups and businesses for Stride One. He replied, “The filtering process is based on a balance between qualitative and quantitative aspects. Quantitative aspects include metrics such as the minimum amount of equity raised so far and factors such as debt-to-equity ratio etc., which shows whether The company is highly leveraged from debt point of view.In addition, the current available runway and Minimum Annual Recurring Revenue (ARR) are also studied for qualitative evaluation.
The qualitative aspects are coupled with our endeavor to work closely with startups and our eagerness to learn about the vibrancy and capabilities of the founding team members. In addition, the growth potential and financial projections of the business model are in line with the current industry scenario and competitiveness. Other factors included under qualitative considerations include analysis of product market fit, quality of existing equity investors and contemporary support from government policies.
We spoke to the co-founder of Stride One, Ishpreet Singh Gandhi To understand what their company looks for when investing in a business and how they view the EV sector in the years to come. He believes, “the development of EV Infrastructure One of the key requirements for India’s EV dreams. development of an effective charging infrastructure The key remains to unlock the potential for EV adoption in India. The sector is witnessing diverse innovative solutions such as battery recycling and battery swapping to ensure long-term sustainability and meet the underlying market challenges of India’s EV sector.
The far reaches of the EV field
There’s more to the EV space than meets the eye. While the general public may be attracted towards passenger cars and two-wheelers, there are many more areas where EVs are being used. “We are also analyzing several areas where e-commerce and delivery aggregators are adopting electricity as a sustainable and efficient fuel alternative to run their operations,” Ishpreet said.
Funding Challenges for the EV Sector
It’s no secret that electric vehicles run on a completely different principle than conventional internal combustion engine-powered vehicles. This difference also holds when it comes to building an EV-focused company. Ishpreet explained, “EVs are a completely new sector and are subject to rapid expansion, these assets pose unique financing challenges. For example, while CapEx funding an EV firm, one of the most significant challenges Calculating the estimated residual value of assets becomes a major hurdle for traditional banks when underwriting EV firms.However, the sector has now embraced new-age VCs and financials from options such as venture credit and supply chain financing solutions. Support has been renewed to help them overcome these traditional challenges, while the same problem does not exist when underwriting ICE vehicle companies through traditional financial bodies.”
“Stride has come forward as the partner of choice to help address such challenges and aims to become a leader in the domain by providing ecosystem-level financial solutions to the EV sector.”
working towards a bright future
We asked Ishpreet what kind of ventures his organization is tackling. He said, “We are collaborating with component manufacturers who are developing battery and charging infrastructure, as well as with battery refurbishing companies etc. Additionally, we are also partnering with EV players who are involved in EV fleet management such as Software and technology are providing value addition, charging as a service, ride-hailing etc.”
Stride One has already partnered with ventures like BlueSmart, Lohm and MoeWing and is targeting to invest Rs 100 crore this year. About 60 per cent of the dedicated amount has already been invested. When asked about the major hotspots for EVs across the country, Ishpreet said, “The EV mobility segment is growing in Delhi NCR with players like BlueSmart. According to market estimates, 143 electric vehicles were registered daily in Delhi till June 30. Charging infrastructure is booming across Bangalore. BESCOM is operating 136 EV chargers in Bengaluru city and has recently invited tenders to set up 1,000 EV charging stations across Karnataka in a PPP model.
Additionally, the company is looking to infuse another Rs 20 crore into the EV segment in the next 2-3 years.
The Automotive Components Manufacturers Association (ACMA) recently spoke about its intention to integrate non-traditional players such as telematics companies and battery makers with the introduction of EVs. This can be seen as another step towards the transition of our country to green mode of transport. Ishpreet said, “Such partnerships can enable active participation in trade promotion, technology up-gradation, quality enhancement and collection and dissemination of information across multiple stakeholders. In addition, innovative EV solutions such as battery recycling etc. from such associations It is expected to help in accelerating the contribution of Indian OEMs in implementing EVs that meet the long-standing challenges of the EV sector in India. Participation in international trade fairs, sending business delegations abroad and publications on various topics related to the EV industry Activities like evacuation will get welcome support from such cooperation.
finding the right match
We also inquired about the process for contacting potential startups and businesses for Stride One. He replied, “The filtering process is based on a balance between qualitative and quantitative aspects. Quantitative aspects include metrics such as the minimum amount of equity raised so far and factors such as debt-to-equity ratio etc., which shows whether The company is highly leveraged from debt point of view.In addition, the current available runway and Minimum Annual Recurring Revenue (ARR) are also studied for qualitative evaluation.
The qualitative aspects are coupled with our endeavor to work closely with startups and our eagerness to learn about the vibrancy and capabilities of the founding team members. In addition, the growth potential and financial projections of the business model are in line with the current industry scenario and competitiveness. Other factors included under qualitative considerations include analysis of product market fit, quality of existing equity investors and contemporary support from government policies.