EV ride-hailing company Electra Cabs raises $24 million in funding

Electra Cabs, a ride-hailing startup that uses only electric vehicles, has raised $24 million, or Rs 200 crore, in a funding round led by its existing investors Zurich-based climate finance firm ResponsAbility Investments, cricketer MS Dhoni’s Family Office, and ReNew founder Sumant Gupta.The funding will be used for expanding operations and building EV charging infrastructure and assets, Electra Cabs said in a statement. ET had earlier reported on the funding on May 23, based on regulatory filings.

“We are happy to continue our partnership with Electra Cabs through our second round of funding. Electra Cabs has been able to lead the way in building from the grounds up an entire EV ecosystem to disrupt the conventional modes of commute without compromising on reliability and convenience,” said Sameer Aggarwal, head of climate infrastructure investments APAC at ResponsAbility Investments.

The firm said it has crossed Rs 550 crore in annualised revenue run-rate (ARR). It currently runs 7,500 EVs across the country and employs over 9,800 drivers.

Electra Cabs crossed Rs 390 crore in revenue in FY24, compared to about Rs 160 crore in FY23, cofounder Punit Mishra told ET in April. It is looking to turn profitable on an earnings before interest, tax, depreciation and amortisation (Ebitda) level in March 2026, Mishra added.

The company competes with Uber and Ola, as well as new entrants like Rapido and Namma Yatri in the cab-hailing space. Unlike its competitors, Electra Cabs owns or leases all of its fleet of cars and charging stations, and employs drivers who are paid a combination of fixed salaries and performance-based incentives.

The company has faced trouble raising external capital over the last few years. In mid-2022, the firm said it was looking to raise $250 million from investors including BP’s venture capital division, but ended up conducting two smaller fundraising instances totalling about $66 million in 2023, including a rights issue later in the year that saw its founders increase their stake.