Optimistic about the rising popularity of e-mobility, bp and an investment fund managed by Morgan Stanley India Infrastructure have announced to invest a total of $22 million equity investment into Magenta Mobility.
Jio-bp – part of bp’s joint venture with Reliance – will be the exclusive EV charging partner for Magenta Mobility’s fleet.
Within a few years of operations, Jio-bp has constructed and launched many of India’s largest EV fleet charging hubs along with hundreds of public charge points in various cities and major highways across the country.
Magenta Mobility is one of India’s largest electric mobility providers with more than 750 three-wheel electric vehicles (EVs) across seven cities providing electrified last-mile delivery logistics.
With more than 100 million online shoppers and the government’s target of the electrification of e-commerce delivery and logistics by 2030, India is a key market for bp’s global electrification business, bp pulse. bp and Magenta Mobility will also collaborate on electric fleet management software.
Magenta Mobility plans to expand its fleet to 4,000 three and four-wheel EVs across the country over the next year. The capital will support Magenta Mobility’s market expansion into eight additional cities across India in the next two years beyond strengthening its presence in Bengaluru, Mysuru, Delhi, Gurgaon, Noida, Hyderabad, and Mumbai.
Sashi Mukundan, President, bp India, and senior vice president, bp said, “Decarbonizing the last mile is increasingly important in India as the e-commerce market is expected to grow fourfold by 2030, which will require the deployment of huge numbers of new vehicles this decade. With the Indian Government setting an ambitious 2030 target for the complete transition to EVs for e-commerce, delivery, and transport logistics service providers, Magenta Mobility through its operations will help decarbonize Indian cities whilst helping meet demand in the fast-growing e-commerce delivery industry.
“This is bp’s first venture-led entry into India’s last-mile delivery market and our second in India’s mobility sector. We are proud to be investing and partnering with Magenta Mobility, to support the company’s growth across India. We see this investment as an opportunity to further advance decarbonizing mobility solutions.”
bp is investing heavily in five transition growth engines that will help drive its transition to an integrated energy company and deliver its net zero plans, including BP PULSETM electric vehicle infrastructure, which is already live in nine countries worldwide.
Shyamsundar Gurumoorthy, Managing Director and Co-Head of Morgan Stanley India Infrastructure said, “We are very excited to work with dynamic co-founders and a management team that is at the heart of building the Indian commercial EV fleet eco-system. Being one of the early entrants in the charging infrastructure space, the company is uniquely positioned to stitch an end-to-end solution to enable businesses to go electric in their middle and last-mile operations. In terms of market opportunity, there are strong tailwinds supporting EV adoption by large customers in their supply chain both for economic and sustainability reasons. We believe that Magenta Mobility will play a leadership role in scaling this industry, consolidating its market-leading position, and support the growth of sustainable logistics”.
Maxson Lewis, Founder, and Managing Director of Magenta Mobility added, “This investment from bp ventures and Morgan Stanley India Infrastructure is a significant milestone for the Company as we look to build on our strong foundations in the EV space over the last 4 years. This investment and backing will catapult us in scaling our tech-led Electric Mobility platform across the country.
“Magenta Mobility was one of the pioneers of electric vehicle charging in India. We understand the pain points, and limitations of EV adoption in commercial fleet operations and have developed technology/software solutions to address these issues. Today, with our solutions we are delivering for some of India’s largest and most successful companies. We’re excited about our relationship with global marquee investors like bp and Morgan Stanley, as we continue to electrify and decarbonize logistics in India.”