The EV opportunity in India: 10 takeaways from a conversation with Kunal Khattar
Notes from conversations with entrepreneurs, investors, industry leaders, and other stakeholders building India’s deep tech and climate tech ecosystems.
In this week’s episode of In Conversation, I spoke with Kunal Khattar, founding managing partner at AdvantEdge Founders, a ‘sector-focused’ early-stage VC firm in New Delhi that’s well known for backing founders in the EV and mobility sectors in India.
AdvantEdge is into its 10th year now and known for backing startups like Rapido, Chalo, ZingBus, Park+, Baaz, Shuttl, and Exponent Energy, with close to 40 companies in its portfolio across its first two funds. The firm is close to announcing the first close of its third fund which has a targeted total of $75 million.
Kunal says his mission is to foster a 100 successful entrepreneurs in the mobility space. We discussed a range of connected topics, including why he expects the EV space to hit the J-curve growth stage over the next three to five years, how replacing the overall ICE economy in India is a trillion-dollar opportunity, and the rise of deep tech and new solutions like clean hydrogen in India’s mobility space.
Here are my top 10 takeaways.
1. AdvantEdge’s sector focus and founder-first philosophy
Khattar explains that AdvantEdge Founders was built with a clear mission: to create 100 successful founders, not just unicorns or high returns. The fund’s North Star metric is founder success, and this ethos shapes everything from team titles to investment decisions. AdvantEdge views itself as a startup, with an operator’s mindset, emphasizing hands-on support and deep partnership with entrepreneurs throughout their early journeys.
2. India’s $1 trillion EV opportunity and the Suzuki 2.0 moment
Khattar draws a parallel between India’s auto sector transformation after Suzuki’s entry and the current EV revolution. He believes the transition from internal combustion engines (ICE) to electric vehicles could create $1 trillion in market value across OEMs, component suppliers, dealerships, financing, insurance, and energy distribution — mirroring the ecosystem Suzuki built, but now cantered on electrification and new business models.
3. Prioritizing commercial vehicle electrification for maximum impact
The fund’s thesis is to focus on electrifying commercial vehicles —two-wheelers, three-wheelers, buses, and trucks — because they represent only 10 percent of vehicles but account for 70 percent of energy consumption and emissions. Khattar argues that targeting commercial fleets first delivers greater environmental, economic, and social returns, including reduced oil imports and improved livelihoods for millions dependent on these vehicles.
4. India’s unique mobility landscape shapes investment strategy
Unlike the US or China, India’s mobility market is dominated by two- and three-wheelers, buses, and commercial vehicles. AdvantEdge avoids direct comparisons with Western markets and instead focuses on form factors where India is already a global leader. This approach enables the fund to back solutions tailored to Indian needs and scalable across similar emerging markets.
5. The “picks and shovels” approach to building the EV ecosystem
AdvantEdge invests in the enabling infrastructure of the EV transition — what Khattar calls “picks and shovels” companies. These include EV component makers, charging networks, financing and leasing platforms, insurance providers, and energy distribution businesses. The goal is to support the foundational B2B solutions that will underpin the entire EV value chain, rather than just consumer-facing brands.
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6. Timing investments for J-curve growth and sector cycles
Khattar emphasizes the importance of entering sectors at the right time — when J-curve growth is imminent but before valuations become overheated. AdvantEdge is willing to invest in pre-revenue, pre-product companies at the earliest stages, drawing on its operational expertise to help them reach product-market fit. This disciplined timing avoids the pitfalls of entering too early or too late in sector cycles.
7. Deep tech and problem-driven innovation are key differentiators
The fund seeks out deep technology startups that solve fundamental barriers to EV adoption, such as charging speed, range anxiety, and cost. For example, Exponent Energy, a portfolio company, developed proprietary tech to fully charge EVs in under 15 minutes—addressing multiple pain points for commercial operators and accelerating EV adoption in India’s unique market context.
8. Collaborative ecosystem building with other funds and founders
AdvantEdge actively collaborates with larger funds, global investors, and its own portfolio founders to build a thriving ecosystem. “It takes a village,” he says, and believes in sharing research, co-investing, and using complementary strengths is essential. The value of this network compounds with each new investment, creating a snowball effect of knowledge and opportunity.
9. Pragmatic view on hydrogen and next-gen battery tech
Khattar is sceptical about the near-term disruption potential of hydrogen and solid-state batteries in India. He argues that such technologies are at least a decade away from mainstream adoption and that India should focus on indigenous innovation suited to its market realities, rather than chasing the latest breakthroughs from advanced economies.
10. Building for India, not benchmarking against China or the West
Khattar urges Indian founders and investors to avoid direct comparisons with China or the US. Instead, he advocates for building solutions that address India’s unique challenges and opportunities, tapping local strengths in two and three-wheeler markets and focusing on incremental progress. The goal is to create a better India, not to replicate foreign models.
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