Urja Mobility, an electric vehicle (EV) leasing company, has raised ₹1 billion (~$11.9 million) in its Pre-Series A funding round, comprising debt and equity financing.

Mufin Green Finance  and Hindon Mercantile led the funding round.

The company will use the funds to expand its energy consumption and supply chain management solutions, focusing on the e-mobility and energy storage sectors.

The funding will enable UrjaMobility to scale its operations and extend its pay-per-use leasing model. This model allows customers to lease batteries on a per-kilometer basis.

The company also plans to utilize the funding and deploy 300 MWh of energy per day across multiple use cases in the e-mobility segment, a significant increase from its current deployment of 45 MWh of energy per day across the B2B and retail sectors.

The funding will also help the company expand its retail footprint by opening new urban centers, specifically in Tier II and Tier III cities.

The company plans to raise an additional ₹2.5 billion (~$29.77 million) in the first quarter of 2025.

EV sales in India reached 332,730 units in the third quarter of 2024, a decline of over 11% year-over-year against the 372,387 units sold in the same period of 2023. Vs account for 5.8% of overall automobile sales, which totaled 5,697,879 units in Q3 2024, according to data released by the Ministry of Road Transport and Highways.

In July, the Ministry of Power released draft guidelines for EV charging infrastructure, aiming to accelerate the adoption of EVs and create a robust charging ecosystem across the country. The guidelines apply to EV charging infrastructure in privately-owned parking spaces, semi-restricted areas like office buildings, educational institutions, hospitals, group housing societies, e-bus depots, public places such as commercial complexes, railway stations, petrol pumps, airports, metro stations, shopping arcades, municipal parking, and highways and expressways.