Electric vehicle (EV) components maker Vecmocon has raised USD 10 million led by Ecosystem Integrity Fund (EIF). The round also saw participation from existing investor Blume Ventures, besides British International Investment (BII).

The funds will be used to expand its presence across various market segments, including electric two-wheelers and three-wheelers, light commercial vehicles (LCVs), and buses.

“We are going to go deeper into our product offerings. As newer battery chemistries and technologies are coming up, you need to develop, design, and engineer systems to support them. We are going to use the capital that we have raised to do R&D, hire and train people on these developments, and collaborate with larger OEMs for diverse use cases,” cofounder and chief executive Peeyush Asati told ET.

Founded in 2016 by Asati, Adarshkumar Balaraman, and Shivam Wankhede, the startup focuses on developing advanced computing solutions for electric mobility.

It specialises in safety-critical components for EVs, including battery management systems (BMS), EV chargers, vehicle intelligence modules (VIM), and secure firmware over the air (FOTA) solutions.

“EVs make a lot of sense both from an economic and climate perspective, especially because the cost of energy storage, specifically batteries, has decreased significantly. This has led to accelerated adoption of EVs as vehicle prices have dropped considerably. The commercial vehicle segment, where operational costs are high, has been the fastest to adopt electric mobility because EVs offer lower operating costs,” said Asati.

Vecmocon is also aiming to expand internationally with customers in Sri Lanka and explore opportunities in Southeast Asia and African markets.

The IIT Delhi-incubated startup, operates in Delhi, Bangalore, Chennai and Lucknow, serving clients like battery-maker Exide, Mumbai-based EV maker BGauss, and battery-swapping services provider Battery Smart.

It last raised USD 5.2 million from New York-based investment firm Tiger Global, and Blume Ventures in 2022.

Commenting on the investment, Devin Whatley, managing partner at EIF, said “We believe Vecmocon is well-positioned to ride the tailwinds of growing EV adoption in India and lead the EV intelligence movement in the country. In an increasingly crowded Indian EV market, it offers its customers a key competitive edge by enabling both quicker time-to-market as well as higher overall performance and safety.

“What continues to impress us about Vecmocon is their remarkable agility in responding to market needs. Their rapid expansion across major industry partnerships validates their position as a leading vehicle intelligence company,” said Arpit Agarwal, partner at Blume Ventures.

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