Why VCs are backing newer EV start-ups despite the OATS phenomenon

Early-stage funding in the segment rose almost three times to $74 million in 2021 compared to the previous year

“We are champions and champions eat OATS for breakfast.” When Rajiv Bajaj uttered these words a couple of months ago, it set the automobile industry abuzz and ruffled feathers among players in the emerging electric vehicle (EV) market. The managing director of Bajaj Auto said that the country’s major two-wheeler makers – BET, or the trio of Bajaj, (Royal) Enfield and TVS – have a better chance of winning the EV market than the start-ups like Ola, Ather Energy, Tork and SmartE (OATS).
 
But it seems that venture capital (VC) investors are neither wary of the might of the