Commercial electric vehicle (EV) leasing and asset management company Electrifi Mobility secured ₹250 million (~$3.02 million) in seed-stage funding led by Asian Development Bank (ADB) Ventures, AdvantEdge Founders and others.

The funding will help Electrifi scale up asset deployment, expand asset refurbishment service infrastructure, and fuel its plans to cover new cities.

The company said it aims to deploy over ₹5 billion ($6 million) in commercial EV assets over the next three years, which will include electric two and three-wheelers, cars, light commercial vehicles, and heavy commercial vehicles alongside batteries and chargers. This is in addition to more than the 15,000 EV assets that Electrifi manages in partnership with its sister concern, Grip Invest.

“We are extremely excited about partnering with ADB and AdvantEdge Founders. Given ADB Ventures has been at the forefront of supporting cleantech startups in Asia Pacific and AdvantEdge is already India’s premier mobility fund, we can’t think of better partners to have on this journey as we strive to help India electrify mobility and achieve net zero. The capital and support from our investors will enable us to build on our strong start and deploy over 20,000 EVs in India while also building a platform for us to continue to scale in the future,” said Kunal Mundra, CEO and co-founder at Electrifi Mobility.

By deploying an asset-first approach into this space, Electrifi claims to be in a unique position to unlock electrification in India’s commercial fleet market.

The company helps non-banking financial companies and banking partners reduce their credit and asset risks by allowing them to deploy more capital into a critical priority sector.

Similarly, for fleet customers, Electrifi extends flexible leasing plans and second-life leasing options, which allows them to scale faster.

In the third quarter of 2023, EV sales in India touched 371,214 units, registering a 40% year-over-year increase.

Last year, a parliamentary committee recommended extending the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles for at least three years beyond March 31, 2024, to make EVs the norm on Indian roads.