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Bengaluru-based Electric vehicle (EV) charging solutions startup Numocity said that Swiss technology company ABB’s e-mobility division has acquired a controlling stake in it. However, the startup didn’t disclose the acquisition cost. 

With this transaction, ABB will increase its shareholding in Numocity to 72% from 7% earlier, and would gain the right to become its sole owner by 2026. ABB had made an initial investment of 7% in the EV charging solution startup as part of its seed-stage venture capital funding three years ago.

The transaction comes as a part of ABB e-mobility’s overall growth strategy. It is expected to significantly improve ABB’s position across India, South East Asia and the Middle East, which are also the target markets for Numocity as there is increasing demand for charging solutions for EV two-wheelers, three-wheelers, cars and light commercial vehicles.

Numocity was founded in 2018 by Ravikiran Annaswamy, Siddharth Sreenivasan, and Muralidhar Somisetty. Its cloud-based digital platform allows consumers and fleet operators to use a network of fixed chargers or battery swapping solutions on a “pay as you go” basis. 

“We are delighted to expand our presence in the burgeoning Indian market,” said Frank Muehlon, CEO of ABB E-mobility. “Zero-emission mobility will play a key role in the Indian government’s efforts to reduce carbon emissions, while the wider region is a hotbed of digital expertise.”

With rising awareness and the government’s push for switching to EVs, EV sales in the country witnessed a 3X growth in FY22.

However, despite the introduction of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) by the Indian government, there still remains a significant gap in EV adoption and EV infrastructure.

Several experts that Inc42 spoke to recently stressed the importance of having a widespread network of EV charging stations in the country to increase consumer confidence and further spur EV adoption. 

While the government is trying to accelerate this infrastructure growth, the EV companies would also have to join hands in this mission. 

With this deal, Numocity would further expand its digital platforms offering for monetisation and management of EV energy infrastructure, its CEO Annaswamy said.

The startup had raised an undisclosed amount from Ideaspring Capital, Rebright Partners and ABB Technology Ventures (ATV) in January 2020. Its solutions are designed for DC and AC EV chargers for both two- and three-wheeler EVs and battery swapping.

Ideaspring Capital and Rebright will exit the startup following this deal with ABB, the statement said.

While EV companies are aiming for major growth in India and across the world, the startups in the sector are getting a lot of funding. 

On Tuesday, Three Wheels United (TWU), a fintech startup that focuses its financing on EVs, raised $10 Mn in its Series A round led by Delta Corp Holdings. 

On May 24, electric mobility startup BluSmart raised $25 Mn in its follow-on Series A (Series A1) funding round.