E2W startup E3 Electric.Ai raises Rs 100 crore in equity, debt

Electric two-wheeler (e2W) startup E3 Electric.Ai has raised Rs 100 crore in a series A round led by BluVenture Holdings as it gears up to launch an e-scooter in the coming weeks. The company is betting that AI-powered features can help address some of the biggest barriers to EV adoption in India.

The funding comprises Rs 75 crore in equity and Rs 25 crore in debt, and more than 80% of the capital has already been disbursed, founder and chief executive P Sanjeev told ET. The company plans to use the proceeds for product engineering and commercialisation of its first scooter.

"This is our first institutional raise," Sanjeev said, adding that the earlier funding was from angel investors.


Founded in September 2024, the Bengaluru-based startup is developing what it calls an "intelligent family scooter" built on a modular architecture that allows multiple variants to share the same chassis, while allowing for battery upgrades without redesigning the entire vehicle.

In an EV, the chassis is the vehicle's structural frame that supports all major components, including the battery, motor, suspension, and body.

The company says the platform uses AI to analyse several data points from the vehicle, that helps in predictive maintenance, battery health monitoring, and route optimisation.

Sanjeev, who previously led EV divisions at Greaves Electric Mobility's Ampere and TVS Motor, said India's e2W market has moved beyond a demand problem. "It is about solving four core issues — range anxiety, service breakdowns, safety, and financing and resale," he said.

The startup has partnered with more than 60 suppliers for manufacturing, while retaining ownership of the product design and intellectual property. "We are putting capital behind innovation, engineering, and design; not depreciating machinery," Sanjeev said, adding that the company will eventually establish its own manufacturing facilities once volumes scale.

The scooter will initially be launched in Bengaluru before being rolled out across south India and later nationwide through a dealership network. He added that E3 plans to enter around 93 markets with more than 100 dealerships in its first year.