Electric vehicle solutions company Magenta is looking to raise $30 million (around ₹240 crore) in Series B round at a valuation of more than five times compared to the company’s first round of funding done last year.

Incorporated in 2017, this Navi-Mumbai based company saw investments from Indian American philanthropist and entrepreneur Kiran Patel last year. Jito Angel Network and LetsVenture had invested in the pre-series funding in 2020.

The latest round of funding will be used for making strategic investment in start-ups engaged in the same sector, development of new chargers, expanding the vehicle charging business and development of the relatively new vertical which is electric vehicle (EV) last mile mobility.

In December, Magenta invested in Hyderabad-based EV component maker Axiom Energy Conversion, which makes battery chargers and DC converters. Magenta has zeroed in on a few early stage start-ups for yet another strategic investment.   

Speaking to BusinessLine, Maxson Lewis, Managing Director, Magenta said, “We are raising approximately $30 million which will raise Series B funding and will be completed in the next 30-45 days. We got the approval from our board last week for the fund raise programme. By late May we should be able to close the funding”.

While Lewis did not share the absolute valuation of Magenta, he claimed that there has been a 5X increase in valuation between Series A and the upcoming Series B. Talks between the company management and the investors are going on. Promoters hold more than majority in the company. 

“We are bit conscious about the investors we want to work with. We are looking for partners who can be with us for the entire growth perspective. Series A investors are interested in Series B round as well but we are open to new investors,” Lewis added.

Also in cargo mobility

Magenta which started as an EV charging solutions providing company has branched out to not just making and selling chargers for the open market but venturing into providing last mile cargo mobility for e-commerce heavyweights like Amazon, Flipkart and BigBasket.  

“We are into charger making, charging and mobility. So far, we have sold 20,000 chargers and 4,800 charging stations will go online by the end of this financial year. What started with 30 vehicles has grown to 200 in eight months. Another 1,087 EVs will be deployed in this financial year in Bengaluru and Hyderabad before hitting a fleet size of 1,600 EVs,” Lewis added.

The company is in discussion with hotel chains to install charging stations at their properties. It signed deals with Ibis, Fern Hotels and InterGlobe for setting up the stations. While these chargers can be used for all kinds of vehicles Magenta’s preference lies in three and four wheelers and two-wheelers are typically charged at home.

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