EV Startup Baaz Bikes Secures USD 8 Million Funding To Revolutionize Gig Economy

Baaz Bikes, a full-stack electric vehicle ecosystem for gig workers, said it has raised USD 8 million in a round of funding, led by Singapore-based BIG Capital. The Series A round of funding saw participation from Rakuten Capital, Japan-based Rakuten Group’s venture capital arm, along with continued support from existing investors like Kalaari Capital and 9Unicorns.

With a specific focus on gig workers and delivery staff associated with major platforms such as Amazon, Zomato, Zepto, etc., Baaz Bikes has announced its strategic allocation of funds to bolster and refine its product offerings. The primary emphasis will be on elevating safety standards and encouraging scalability within the dynamic gig economy. As per Baaz Bikes, it is revolutionizing the gig economy through its electric scooters and an innovative Automated Battery Swapping Infrastructure named Baaz Swap.

Baaz Bikes, is presently in active operation within the South Delhi region, and has outlined plans to extend its services across the Delhi National Capital Region (NCR) in the next 12 months.

Speaking on the occasion, Anubhav Sharma, Chief Executive Officer, Baaz Bikes, said, " As champions of sustainable mobility, our vision revolves around delivering high-quality products and nurturing an advanced ecosystem that prioritizes safety and rider satisfaction. We take immense pride in ensuring every product and service we offer is meticulously crafted in-house to address key concerns like range anxiety, charging accessibility, and operational efficiency."

Surge In Electric Cargo Bikes

The electric cargo bikes sector in India has witnessed a surge in growth, attributed to the escalating emphasis on sustainable and eco-friendly mobility solutions, particularly in optimizing last-mile transportation. As per findings from the Economic Survey of 2023, the domestic electric vehicle (EV) market is anticipated to experience 49 per cent Compound Annual Growth Rate (CAGR) from 2022 to 2030, projecting an annual sales volume of 10 million units by the end of the next decade.

Preetinder S Panjrath, CFO, BIG Capital, said, “We are delighted to join Baaz Bikes in its journey to empower the gig workers to earn better livelihood with a solution that is both robust and rugged to tackle the infrastructure challenges that hinder widespread adoption of EV solutions. We are firm believers that EV adoption can only be done in a closed loop environment given the constraints of charging infrastructure; in this regard Baaz Bike has the perfect solution to maximize asset and infrastructure utilization.”

More Sustainable Future With A Transformed Gig Economy

In an official announcement, Nicole Jang, Partner at Rakuten Capital, emphasized the strategic positioning of Baaz Bikes, foreseeing significant success in reshaping the gig economy and fostering a more sustainable future.

“With the commercial EV sector in India poised for substantial growth and Baaz Bike's strategic positioning, we firmly believe they are on the path to achieving remarkable success in transforming the gig economy and contributing to a more sustainable future. We look forward to actively supporting their growth and potential impact on the industry,” she said.

Moreover, the surge in the gig workforce in the nation, fueled by the expansion of online delivery platforms spanning various sectors including food, e-commerce, pharmaceuticals, courier services, and more, has heightened the need for electric bikes. In June, 2022, Niti Aayog projected a significant increase in gig workers, estimating a rise to 23.5 million by 2029-30, marking a substantial growth of nearly 200 per cent from the existing 7.7 million.

Conclusion

According to data from the Ministry of Road Transport and Highways' Vahan Dashboard, a staggering 1,037,011 EVs were registered with regional transport offices by September 2023, constituting 6.4 per cent of the total automobile sales in the country for the year. The success of initiatives like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) and the ongoing expansion of charging infrastructure have been instrumental in fostering the widespread adoption of electric vehicles, further solidifying the promising future of the EV sector in India.