Whalesbook
Funding Secured for Heavy EVs
Drivn, a company working in India's electric vehicle sector, has raised $140 million. The funding includes an $80 million commitment from Japan's Nomura, partly structured as debt with an equity element, which will be released in two stages. Drivn is focusing on India's heavy commercial electric vehicle market, which includes buses and trucks. This sector is very expensive to enter and has seen slow adoption because of high costs and difficult operations. These heavy vehicles handle a lot of freight but still rely mostly on diesel. Traditional lenders have been hesitant to finance them due to high capital requirements and risks tied to the assets.
Drivn's Strategy: Own, Lease, and Charge
Founded by Manav Bansal and Alpna Jain (formerly with NITI Aayog), Drivn's strategy aims to bypass the financial challenges of electrifying commercial fleets. The company buys electric buses and trucks and leases them to operators through long-term agreements. This directly tackles the main obstacle: electric vehicles cost much more upfront than diesel ones. For example, an electric bus can cost 2 to 2.5 times more than a diesel bus, with prices between ₹1.5 crore and ₹2.2 crore for a twelve-meter model. Drivn highlights the savings from electric powertrains, estimating running costs as low as ₹35 per kilometer, compared to about ₹50 per kilometer for diesel. These potential savings, around ₹30 lakh per bus annually, and a lower overall cost of ownership over 25 years, are key to its financing model. Drivn is avoiding dependence on public charging networks, choosing instead to build its own charging facilities at depots and on busy freight routes. This approach focuses on specific routes and builds infrastructure accordingly, which is practical in a market still developing broad charging options for heavy vehicles.
Competitive Landscape
Drivn is entering a busy and competitive Indian market for commercial electric vehicles. Large auto companies such as Tata Motors and Ashok Leyland are rapidly growing their electric offerings. Tata Motors, already strong in electric cars, is introducing its Prima E.55S electric trucks and plans to deploy 3,300 electric buses by FY2025. Ashok Leyland is also a major competitor, investing significantly in its EV division, Switch Mobility, and building new EV factories. Other companies involved in electric commercial vehicles include Mahindra & Mahindra, Eicher Motors, and Olectra Greentech. In 2025, funding for India's overall EV sector rose 27% year-on-year to $1.4 billion. Commercial EV projects received much more capital than passenger EV startups because they operate more hours daily and offer better total cost of ownership. Drivn aims to be an independent aggregator, buying vehicles from various makers like Ashok Leyland, Tata Motors, JBM, and Volvo-Eicher. This allows Drivn to stay flexible in a fast-changing market.
Challenges and Risks
While Drivn has secured substantial funding and a clear business case, its plans face significant challenges. The biggest issue is the underdeveloped infrastructure for heavy commercial electric vehicles. Drivn plans to use dedicated, route-specific charging, but the general shortage of high-capacity charging stations for long-haul trucks and buses creates operational risks. Additionally, the long-term resale value and maintenance of these newer vehicles are not yet fully proven, which adds to the caution among lenders. India's power grid, though improving, still uses a lot of fossil fuels, which reduces the overall environmental advantage of electric vehicles. Drivn's financing model, dependent on debt and achieving its predicted savings, could suffer if fleet usage is lower than expected, if operations are disrupted, or if diesel prices don't fall as anticipated. Strong competition from large manufacturers with vast resources and established service networks also presents a major hurdle, potentially impacting Drivn's profits and market reach.
Government Support and Growth Targets
Government policies in India are strongly supporting EV adoption, with programs like FAME II and PM E-DRIVE offering financial incentives and aid for infrastructure. The government has set ambitious goals, including 30% EV use by 2030 and mandates for electrifying vehicle fleets. Drivn's founders, with experience in policy and finance, believe they have a strategic window of 5-7 years to become a leading player before traditional banks become more active in this sector. The company aims to build an asset base of over ₹1,200 crore in vehicles and reach ₹1,340 crore in Assets Under Management (AUM) by FY27, indicating a rapid expansion plan to capture a large share of this developing market.