Electric mobility startup Drivn has secured $140 million in funding to scale its operations in India’s commercial EV sector, focusing on electric buses and trucks. The round includes an $80 million commitment from Japan’s Nomura, structured as a mix of debt and equity, to be released in phases.
Focus on Heavy Commercial EVs
Drivn is targeting one of the toughest segments in the EV space—heavy commercial vehicles. Trucks and buses in India are still largely diesel-powered due to high upfront EV costs and limited charging infrastructure.
The company believes the shift will come through financing and operational innovation rather than direct vehicle sales.
Asset-Heavy Leasing Model
- It purchases electric buses and trucks
- Leases them to fleet operators on long-term contracts
- Builds dedicated charging infrastructure at depots and key freight routes
The idea is to remove the upfront cost barrier for operators. A 12-metre electric bus can cost ₹1.5–2.2 crore, nearly 2–2.5 times more than a diesel bus.
Drivn estimates that EVs can bring operating costs down to about ₹35 per km, compared to roughly ₹50 per km for diesel vehicles, potentially saving operators up to ₹30 lakh per bus annually depending on usage.
Competitive Market
The company enters a market already dominated by major players, including:
- Tata Motors
- Ashok Leyland
- Mahindra & Mahindra
- Eicher Motors
These firms are rapidly expanding their electric bus and truck portfolios, backed by strong manufacturing scale and dealer networks.
Drivn aims to differentiate itself by acting as a neutral fleet aggregator, sourcing vehicles from multiple OEMs rather than relying on a single brand.
Infrastructure and Risks
One of the biggest challenges remains charging infrastructure. Heavy-duty EVs require high-capacity, route-specific charging setups, which are still limited in India.
Drivn plans to address this by building its own charging network at depots and along freight corridors, reducing dependence on public infrastructure.
Other risks include:
- Unproven long-term resale value of commercial EVs
- High capital requirements and debt exposure
- Dependence on consistent fleet utilisation
- Strong competition from established OEM-backed fleet solutions
Policy Support and Growth Plans
Government programs such as FAME II and PM E-DRIVE continue to support EV adoption through subsidies and infrastructure development. India’s target of 30% EV penetration by 2030 also provides long-term tailwinds.
Drivn expects this policy window to be critical as it scales its operations over the next 5–7 years.
The company aims to build a fleet asset base exceeding ₹1,200 crore and reach around ₹1,340 crore in assets under management by FY27.
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