Introducing Evate: Facilitating the Transition from ICE to EV

In 2023, Evate emerged as a promising startup, gaining recognition as part of Tech30 cohort. Founded by Vijay Madhusudan and Amit Shahani, Evate addresses the growing concern of abandoned combustion engine vehicles in the wake of China's rapid shift to electric vehicles (EVs). The founders envisioned a circular ecosystem for EVs, leading to the creation of Evate, a Bengaluru-based startup that focuses on retrofitting passenger mobility ICE vehicles, especially auto-rickshaws, into e-autos.

Addressing the Challenge of Abandoned Vehicles

The transition to EVs is not without challenges, as seen in the abandoned EVs contributing to burgeoning junkyards. Evate aims to tackle this issue by retrofitting existing internal combustion engine (ICE) vehicles, preventing wastage and reducing road congestion. The startup believes in creating a comprehensive ecosystem where every aspect of the retrofitting process is seamlessly integrated.

Evate's Unique Proposition: A Complete Retrofitting Experience

Evate stands out by offering a holistic retrofitting experience through its mobile app, currently in the beta testing phase. The app covers the entire retrofitting journey, from locating retrofitters to post-retrofitting asset management. According to Madhusudan, one of the founders, the app acts as an intermediary, connecting drivers with essential services such as loans and retrofitting specialists.

From App to Ecosystem: Connecting the Dots

Evate primarily targets commercial vehicle drivers, with a current focus on three-wheelers, specifically autos. The app facilitates the location of nearby retrofitters, guides users through the conversion process, and provides detailed information on associated financial aspects. Evate has formed partnerships with large auto driver associations and original equipment manufacturers (OEMs) engaged in retrofitting.

Closing the Financial Loop: Loans and More

Evate goes beyond just facilitating retrofitting and extends its services to financial aspects. The app provides drivers with access to various financial products, including tailored loans designed to make retrofitting costs manageable. The start-up’s ability to technically underwrite emerging technologies sets it apart, offering loans against products that traditional financial institutions find challenging to support.

Revenue Generation and Future Prospects

Evate generates revenue primarily through the loan products it disburses on its platform, earning margins on interest rates. The company also earns money through processing fees and margins on EV kits it helps sell. As Evate expands, it envisions additional revenue streams from ancillary services such as insurance and accessories sold through its app. Currently in the early stages of revenue generation, Evate aims to disburse 10,000 loans with $18.75 million in assets under management (AUM) by the end of 2024.

Looking Ahead: The Growing Retrofit Market

The global automotive retrofit EV powertrain market is on the rise, projected to reach $125.37 billion by 2032. The Asia Pacific region, particularly India, holds a significant share in the retrofit market. Several companies, including Evate, e-Trio, Altigreen, RACEnergy, and Loop Moto, are contributing to the growth of EV retrofitting in India.

In summary, Evate's innovative approach to retrofitting, coupled with its comprehensive app, positions it as a key player in facilitating a smooth transition from internal combustion engine vehicles to electric vehicles. As it continues to expand and raise capital, Evate aims to play a crucial role in the evolving landscape of sustainable and circular mobility.