Electric mobility startup Magenta Mobility raised $22 million Series A1 from Morgan Stanley India Infrastructure and BP Ventures. Magenta will use the all-equity investment to boost its existing logistics and last-mile delivery fleet operations.
The Navi Mumbai-based startup operates a fleet of 800 three-wheeled electric cargo trucks that deliver goods in seven cities across India: Bengaluru, Delhi, Mumbai, Mysuru, Hyderabad, Gurugram, and Noida. Magenta intends to use its latest capital infusion to expand into eight new cities over the next two years, and to increase its fleet to 4,000 three- and four-wheeled EVs in the following year. To supply its fleet, the company works with local and global OEMs such as Tata Motors, Mahindra, Piago, Omega Seiki, and Euler, among others.
Magenta currently has approximately 35 customers, which include e-commerce and grocery delivery companies such as Flipkart, BigBasket, Udaan, and Amazon. As commercial EV adoption grows in the country, the startup has begun handling deliveries of food, grains, and even water and mattresses. Magenta claims to have completed nearly 70 million deliveries totaling 6.4 million kilometres, with e-commerce accounting for 60% of the total.
Maxson Lewis, Magenta’s founder and managing director, declined to share revenue figures but stated that the company has grown at a rate of 5x per year. The firm employs 200 people across four cities in four different offices.
BP Ventures’ investment is more than just a financial partnership. BP brings access to its network of strategic partners, as well as a wealth of knowledge gained through 14 previous mobility investments and $27 million invested in India to date. Magenta Mobility is BP Ventures’ second investment in the country, following last year’s investment in EV ride-hailing startup BluSmart.