StrideOne in talks to acquire EV tech startup MoEVing

By Chicago 4 Min Read

StrideOne Capital Pvt. Ltd, the non-banking financial company (NBFC) set up by the founders of venture debt fund Stride Ventures, is in talks to acquire MoEVing Urban Technologies Ltd, the operator of the electric vehicle (EV) tech startup MoEVing, said two people aware of the development, seeking anonymity.

The potential deal is likely to facilitate Stride’s entry into the last-mile EV financing sector, which is expected to witness significant growth in the coming years.

The deal could value MoEVing at ₹100-120 crore and will facilitate early investor JSW Ventures’ exit, they added.

“Currently, due diligence is being done,” said one of the people cited above.

The deal could be signed by end of this month, the other person said.

The deal could see Stride One increase its stake to a majority position or may lead to a merger.

So far, MoEVing has raised $10 million across its two funding rounds. It counts StrideOne among its existing investors. It had raised $5 million (around ₹40 crore) from various angel investors in 2021. In November 2022, the firm raised $2.5 million in a follow-on round from JSW Ventures.

Queries emailed to spokespersons of JSW Ventures and MoEVing did not elicit any response. StrideOne declined to comment.

Ishpreet Gandhi, the founder of venture debt firm Stride Ventures that raised its third debt fund of $100 million last month, founded StrideOne in 2019. It received an NBFC licence in FY21 and raised around ₹250 crore from investors led by Elevar Equity in May 2022.

StrideOne has disbursed over ₹2,500 crore in loans, according to its website. In 2022, it acquired ZipLoan, a lender to micro, small and medium enterprises, for an undisclosed sum.

While Stride Ventures follows a fund model and extends loans to startups, the NBFC lends to vendors and other stakeholders of the startup ecosystem. It also lends to individuals. According to its website, it is involved in supply chain financing, receivable management, embedded finance, retail lending and platform financing.

The acquisition of MoEVing can help the company increase last-mile EV financing of delivery partners or other vendors in the ecosystem, one the people cited above said.

Founded in January 2021 by Vikash Mishra and Mragank Jain, MoEVing offers solutions to e-grocery, fast-moving consumer goods, e-commerce, logistics and direct-to-consumer companies to optimize their logistics costs and reduce carbon emissions. It also works with original equipment manufacturers, driver-cum-owners and financial institutions.

As on November 2022, MoEVing had presence in 15 Indian cities, operating 1,500 EVs including two-wheelers and three-wheelers. It has set up more than 30 charging hubs across the nation.

Meanwhile, Stride Ventures raised its third $100 million venture debt fund last month. It has provided over ₹5,000 crore in debt to both large and small startups, including Mensa Brands and Good Glamm.

Structured finance and tailored lending solutions for early-stage companies are expected to grow manifold as an increasing number of startups access financing for growth.

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