Clean Motion AB expands into the Indian EV market with USD 1M investment from India Accelerator

In June 2024, India Accelerator, through its micro VC Finvolve, made a seed fund investment of USD 1 million in Clean Motion’s Indian subsidiary. Clean Mobility Solution India Pvt. Ltd., a subsidiary of Sweden’s Clean Motion AB, will establish a manufacturing facility in Pune, India. The company will use the funds to set up the facility, scale operations, and expand its team in India. This investment supports the company’s efforts in the Indian EV market, focusing on first and last-mile services connecting metro stations, malls, colleges, and offices. Finvolve plans to invest an additional USD 3-5 million over the next two years.

As part of its new business chapter, Clean Mobility Solution India Pvt. Ltd. plans to establish a manufacturing facility in Pune, India, to localize and manufacture its flagship product, Zbee, a three-wheeled passenger EV for global markets. The company will also set up EV charging infrastructure through operation clusters, each equipped with parking, plug-in chargers, and swappable batteries to support 20-25 Zbee vehicles.

The announcement was made at an event held at Business Sweden, attended by H.E. Jan Thesleff, Ambassador of Sweden to India; Ms. Cecilia Oskarsson, Trade & Invest Commissioner of Sweden to India and South Asia, Business Sweden; and Clean Motion’s investors.

Talking about Clean Motion AB unfolding its India chapter, H.E. Jan Thesleff, Ambassador of Sweden to India said, “I am delighted to witness the collaboration between Clean Motion AB, an innovative Swedish mobility company, and India Accelerator. This partnership signifies a step towards addressing the pressing challenges posed by climate change and the need to think differently about transportation. By combining the strengths of both nations, this collaboration aims to scale-up and contribute to solutions that meet the demands of the Indian market.”

Commenting on the fundraise and Clean Motion AB’s foray, Mr. Ashish Bhatia of Finvolve said, “India is making impressive strides in the EV space and is poised to lead the charge of sustainable mobility at a global level. It is our strategic investment in the EV space, and we are confident that India’s favourable manufacturing environment will provide an impetus for growth to Clean India, bringing about a significant shift in the global EV market.”

Dr. Deb Mukherji of Clean Mobility Solution India Pvt. Ltd. added, “We appreciate the trust that India Accelerator, Finvolve and other prestigious investors have put in our company’s capabilities. Our strategic allocation plan will help us scale our operations, focused on strengthening the country’s ‘Make in India’ efforts and solidifying its position as a leader in the global urban mobility transportation space. We plan to further raise a Pre-series round of $3-5Mn early next year to achieve our scale objectives.”

Ms. Cecilia Oskarsson, Trade & Invest Commissioner of Sweden to India, remarked, “Today marks a significant milestone in strengthening Sweden and India’s business ties. Integrating Sweden’s engineering and R&D with India’s robust manufacturing capabilities will herald a new era of growth and sustainability in the EV sector. We are immensely proud to support this venture, confident that it will drive economic growth and environmental stewardship, leading the global transition to cleaner and more efficient transportation solutions.”

Clean Motion AB was introduced to India in 2014 through the India-Sweden Innovations’ Accelerator programme, focusing on green transformation and resource optimisation in India. This programme is supported by the Swedish Energy Agency, Business Sweden, and CII – Green Business Centre.