Two startups from very different corners of technology have announced new funding moves. AuxoAI is expanding its enterprise AI delivery model after raising $20.7 million in Series A funding. Meanwhile, Konwert India Motors has secured a pre-Series A round from The Chennai Angels to grow its electric-vehicle retrofit business.

One is focused on helping large companies put AI into daily operations. The other wants to help auto-rickshaw owners switch from petrol, CNG or LPG to electric power without buying an entirely new vehicle.

AuxoAI raises $20.7 million for enterprise AI expansion

AuxoAI was founded in 2023 by Amaresh Tripathy, Arvinder Pal Singh and Kabir Singh. The company has raised $20.7 million in a Series A round led by NTTVC, a Silicon Valley venture capital firm backed by NTT.

The startup works with large companies to build AI systems that are useful in real business settings. Rather than only selling software, AuxoAI sends strategists and engineers to work closely with a client’s team. This helps the company understand how work is actually done before developing an AI solution.

For example, a manufacturer may want to reduce delays in its supply chain, while a telecom company may want faster customer support. AuxoAI’s approach is to study the process, build the required system and help the company use it in production.

The new money will be used to expand its global team of AI specialists, invest in its own technology and grow its partnerships. AuxoAI says it has already worked with more than 40 clients in industries including manufacturing, consumer goods, healthcare and telecom as per its Press release.

AuxoAI operates in a competitive enterprise AI market that includes large consulting firms, cloud companies and AI implementation startups. Its key challenge will be proving that its solutions create measurable business value after the initial AI excitement fades.

Konwert India Motors gets pre-Series A funding for EV retrofits

Coimbatore-based Konwert India Motors has raised a pre-Series A round led by The Chennai Angels. Existing investors Campus Angels Network, Keiretsu Forum Chennai and Native Angel Network also participated. The company did not disclose the size of the funding round.

Konwert India Motors was founded in 2019 by Nickendra Manikandan. It develops electric powertrains that can convert petrol, CNG and LPG auto-rickshaws into electric vehicles.

This retrofit model can be important for drivers who cannot afford a new electric three-wheeler. Instead of replacing the vehicle, the driver can convert the auto-rickshaw already in use. Konwert says its process can complete a conversion in about 90 minutes reported The Print.

The startup plans to use the fresh funds to grow sales, add more products and enter new markets in India and overseas. It is also developing retrofit options for light commercial vehicles.

Why EV retrofits could matter

A retrofit is not the same as buying a new EV. It changes an existing vehicle’s power system so that it can run on electricity. For an auto-rickshaw driver, the possible benefit is lower running cost while continuing to use a familiar vehicle.

Konwert says its retrofit costs around half the price of a new electric auto-rickshaw. The company also works with myTVS service locations and lending partners to make installation, servicing and financing easier. These are company claims, so actual costs and savings may differ depending on the vehicle, city and driving pattern.

Konwert will compete with electric three-wheeler makers, retrofit-kit providers and battery-leasing companies. Its advantage may lie in making EV adoption more affordable for existing drivers.

Bengaluru-based electric two-wheeler startup Simple Energy has raised Rs. 1,750 crore in a Series C funding round. The investment was led by the Dr. Arokiaswamy Velumani Family Office, with participation from Simple Energy’s leadership and other family offices.

The all-equity round gives the company a large financial base to expand manufacturing, develop new products and build a stronger sales and service network. It also comes at a time when competition in India’s electric scooter market is becoming more intense.

Simple Energy and its vision

Simple Energy was founded in 2019 by Suhas Rajkumar and Shreshth Mishra. Ankit Gupta is also part of the company’s leadership as co-founder and chief financial officer.

The startup aims to build electric two-wheelers with a strong focus on performance, technology and local manufacturing.

Its best-known product is the Simple One electric scooter. The company has also worked on developing key systems such as the powertrain, battery technology and motor components. This approach can give an EV maker greater control over product quality, costs and future upgrades.

The company’s larger goal is to become a significant Indian electric mobility brand rather than remain a small regional scooter manufacturer.

How the Rs. 1,750 crore funding may be used

Simple Energy has said that the new capital will support three main areas – manufacturing, product development and retail expansion. Reports also indicate that the company plans to expand production capacity, strengthen its retail presence and build more service support.

One expected priority is increasing production. Higher capacity can help Simple Energy serve more customers and reduce waiting periods. The company is reportedly targeting production of up to 30,000 electric two-wheelers each month as it scales as per ToI.

The money may also help the startup introduce new scooter models, improve battery performance and invest in research. For buyers, this could mean better range, improved reliability and more choices across different price segments.

A wider retail and service network is equally important. Electric scooter customers usually look for easy access to test rides, repairs, spare parts and battery support. Expanding these facilities could make Simple Energy more competitive outside major cities.

The latest round reportedly takes Simple Energy’s total capital raised to about Rs. 2,530 crore as per FPJ.

Competition in the electric scooter market

Simple Energy faces competition from established companies such as TVS Motor, Bajaj Auto, Ather Energy, Ola Electric and Vida. These brands already have stronger distribution networks and, in several cases, wider service coverage.

Simple Energy’s possible advantage lies in its focus on in-house technology and premium electric scooters. However, the company will need to prove that it can deliver products at scale while maintaining quality and customer support.

The funding provides the opportunity, but execution will decide whether the startup can achieve its growth plans.

Conclusion with key takeaways

Simple Energy’s Rs. 1,750 crore Series C round is a major vote of confidence in its electric mobility plans. The funding is expected to support factory expansion, new product development, retail growth and after-sales service.

For the Indian EV market, the development may lead to more competition and faster product innovation. For Simple Energy, the next challenge will be converting this large investment into dependable scooters, timely deliveries and a strong nationwide customer experience.

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