GearHead Motors raises Rs6 crore

Hyderabad-based D2C e-bike startup GearHead Motors has raised Rs6 crore last week as part of its seed funding round.

The fresh funds will be used to expand the startup’s operations pan-India of high-quality electric bikes to accelerate growth in electric vehicles. 

The funding round, led by Hemin Shah, Director of Collabera USA, and Sudhakar Moparthy, Director of Skillbanc USA, comes at a time when there is a rise in climate awareness while people are shifting towards health and fitness while choosing sustainable products.

Founded in 2020 by Nikhil Gunda and Meher Sai, the brand works to bridge the gap between the global supply of electric vehicles and the needs of Indian customers. “Currently there has been a rise of Electric Vehicle penetration in the Indian Market by foreign companies trying to sell their substandard products. As these products are being imported, they often do not align with Indian conditions, and hence the demand for Electric Vehicles in the market is seen to be on a decline," said Gunda. 

The startup is also building an ecosystem that is set to support sustainable mobility in the future. The e-bike market size is increasing and is projected to reach $80.6 billion by 2027. The increase in demand for sustainable mobility solutions increased fuel prices, and the growing interest in cycling as a fitness and recreational activity is segmented to the highest year-on-year growth from 2021. 

Meanwhile, electric two-wheeler sales could miss the target of 10 lakh units in fiscal 2022-23 by 20 per cent, mainly due to withholding of around Rs1,100 crore subsidy by the government, according to industry body SMEV. 

In 2022, sales of electric two-wheelers stood at around 6 lakh units, with three major electric two-wheeler (E2W) makers – Hero Electric, Ola and Okinawa  –  crossing the 1 lakh annual sales mark for the first time, the Society Of Manufacturers Of Electric Vehicles (SMEV) said.