Bengaluru-based electric tractor technology company Moonrider has raised $2.2 million (~₹182.6 million) in a seed funding round co-led by AdvantEdge Founders and Micelio Technology Fund. A group of angel investors also participated in the funding round.

The company plans to use the funds to enhance its innovation capabilities in vehicle engineering, software development, and battery technology. The company has filed a patent for its in-house battery technology, which it considers a key feature of its electric tractors.

Moonrider said it has achieved price parity with diesel tractors to ensure accessibility for farmers and fleet operators.

The company aims to support farming operations by providing cost-effective and eco-friendly solutions.

Co-founder and CEO of Moonrider Anoop Srikantaswamy said electric tractors are designed to address diverse farming needs, improve farmer income, and promote sustainable farming practices. Moonrider has also formed partnerships with leading agricultural players and fleet operators in India and abroad to enhance productivity and develop scalable solutions.

In September last year, the Union Cabinet approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Program,’ and the ‘PM-eBus Sewa-Payment Security Mechanism Program,’ to support electric mobility initiatives.

The PM E-DRIVE Program, with a total outlay of ₹109 billion (~$1.29 billion), focuses on providing demand incentives, deploying electric vehicles (EV), and developing charging infrastructure to support wider EV adoption. The PM-eBus Sewa-Payment Security Mechanism Program, with an outlay of ₹34.35 billion ($409 million), will support the procurement and operation of over 38,000 electric buses from FY 2024-25 to FY 2028-29.

Electric vehicle sales in India reached a record 1.95 million units in 2024, an over 27% growth year-over-year against the 1.53 million units sold in 2023. The EV market consistently surpassed the 100,000-unit mark every month, with October registering the highest sales at 219,527 units.