Astranova Mobility targets $1 billion in sustainable transport assets

The future of sustainable mobility will involve multiple technologies, says commercial vehicles operator

Commercial fleet operator Astranova Mobility is moving from solely electric vehicles (EVs) to a broader range of sustainable transportation technologies, including hydrogen and biogas, said a senior executive on Tuesday.

 

The company, formerly Electrifi Mobility, has 20,000 EVs, including two-wheelers, three-wheelers, passenger cars, and light commercial vehicles. It aims to double the number in 12 months and, in five years, achieve its target of deploying sustainable transportation assets worth $1 billion.

 

“Our mission has always been to accelerate India's journey to sustainable mobility. While EVs are a crucial part of this transition, the future will involve multiple technologies, including hydrogen, biogas, and hybrid solutions,” Kunal Mundra, chief executive officer and co-founder of Astranova Mobility, told Business Standard in an interaction.

 

The company is rebranding itself as part of a plan to have more technologies in its portfolio. “Rebranding from Electrifi Mobility to Astranova Mobility represents our broader vision to support other technologies as we move from a narrow electrified community to a broader Astranova community,” said Mundra.

 

The “vision” includes customising its financing and leasing solutions for businesses so that they can shift to sustainable transport with minimal financial risk. Astranova said its proprietary engineering and data-driven platform sets it apart in an industry where financing is a barrier to the large-scale adoption of sustainable transport.

 

One challenge in sustainable mobility adoption is financing, as traditional lenders are cautious due to rapid technological advancements and uncertain asset residual values in the EV space. “Less than 10 per cent of potential fleet operators are able to access the right financing at the right price,” said Mundra.

 

Astranova, as a solution, has partnered with banks and non-banking financial companies to develop asset-backed financing models that cater specifically to sustainable mobility solutions.

 

With an annual revenue run rate of around Rs 25 crore, Astranova has reached profitability after becoming operational in 2023. It does business in India’s six largest cities and is expanding to 20 more cities.

 

The company said it has secured equity funding from major investors, including Asian Development Bank Ventures and AdvantEdge. It has EV assets worth Rs 300 crore and partnerships with 20 original equipment manufacturers and financial institutions.