Bangalore-based electric vehicle manufacturer 3ev Industries has raised roughly $13.4 million in a Series A round anchored by Mahanagar Gas Limited, marking the city gas distributor’s first strategic move into India’s electric mobility market. The fresh capital is intended to accelerate 3ev’s scale-up across manufacturing, supply chain, and services as the company targets the fast-growing segment of electric three-wheelers. The round underscores rising institutional interest in last-mile electrification as India’s urban transport systems gradually shift toward cleaner alternatives.
Details of the Series A Round
The Series A financing totals the rupee equivalent of about $13.4 million, led by Mahanagar Gas with an investment of roughly $10.8 million. Additional commitments came from the Thackersey Group at around $1.2 million, Equentis at about $900,000, BestVantage at roughly $1.1 million, and a group of high-net-worth individuals, ultra-high-net-worth individuals, and family offices contributing close to $500,000. The transaction gives 3ev a stronger balance sheet to fund manufacturing expansion and deepen its presence in both passenger and cargo-focused electric three-wheelers.
Strategic Rationale for Mahanagar Gas
For Mahanagar Gas, the deal represents a deliberate step beyond its core city gas distribution business into the broader clean mobility value chain. The company is using this strategic stake to gain exposure to electric solutions that complement its existing role in fueling compressed natural gas fleets across major urban centers. By backing 3ev at this stage, Mahanagar Gas positions itself to participate in new revenue pools as regulations, customer preferences, and economics shift in favor of low-emission transport.
3ev’s Business Model and Technology
3ev designs and manufactures L5-certified electric three-wheelers for both passenger and cargo applications, while also offering internal combustion engine to EV conversion kits. The company operates an ecosystem model that combines vehicle sales with a battery-as-a-service platform, aftermarket support, and tailored financing solutions delivered through its 3eco operating arm. With the new funding, 3ev plans to expand its 3C division, which focuses on charging, care, and conversions, alongside investments in supply chain integration and research in regenerative braking systems, advanced materials, and solar-enabled cold chain EV technologies.
Market Context for Electric Three-Wheelers
India’s urban mobility landscape is increasingly tilting toward electric three-wheelers, driven by operating cost advantages, tightening emissions norms, and central and state-level policy incentives. Industry estimates cited by the company indicate that the L5 electric three-wheeler segment could grow at a compound annual rate of 19.5 percent to reach about $18.7 billion by 2035, with penetration surpassing 60 percent. This trajectory gives players with a focused product portfolio, service infrastructure, and financing stack a meaningful opportunity to capture share as traditional vehicles are retired from fleets.
Financial Performance and Growth Outlook
3ev reported that vehicle sales nearly doubled from 438 units in FY24 to an expected 834 units in FY25 as demand for its three-wheelers gathered pace. Over the same period, revenue is projected to rise from the rupee equivalent of around $2.0 million to roughly $6.1 million, with the company targeting about $7.3 million in revenue and a positive EBITDA margin by FY26. Management argues that the combination of improving unit economics, a recurring revenue layer from battery and aftermarket services, and rising utilization by fleet operators can support a path to sustainable profitability.
With this Series A round, 3ev strengthens its capital base at a time when the economics of electric three-wheelers and supportive policy frameworks are converging in its favor. The strategic endorsement from Mahanagar Gas and other institutional backers validates its ecosystem-based approach, which links vehicle hardware, battery services, and financing into a single platform. If the company can execute on its expansion plans and technology roadmap, it will be well placed to play a larger role in India’s broader electrification journey in the coming decade.