Why AdvantEdge is Backing Bike Taxis and Delivery Scooters, Not Private Electric Cars: Founder Kunal Khattar Explains

Driven by government incentives and the need for more eco-friendly logistics, India's electric vehicle (EV) transformation is being quietly spearheaded by the commercial sector rather than private car ownership. This observation was key to AdvantEdge's current investment philosophy.

The mobility-focused venture capital fund has discovered a compelling market trend in India: commercial vehicles account for a mere 10 per cent national vehicle fleet, yet they consume 70 per cent all energy used. This major imbalance has steered the fund's capital allocation towards electrifying commercial vehicle platforms across diverse applications.

"We are focussing on electrifying commercial form factors – everything from food delivery to last mile, etc. So focussing on commercial vehicles is a priority for us," Kunal Khattar, Founding Partner at AdvantEdge, told ACKO Drive in an exclusive interview.

By focusing on high-utilisation commercial formats rather than private vehicles, AdvantEdge is positioning itself strategically at the crossroads of environmental impact and commercial sustainability.

Investment Portfolio Spans From Bike Taxis to Battery Infrastructure

When asked about emerging sectors and themes AdvantEdge has explored, Khattar elaborated on the fund's portfolio companies: "Here are a few names... Zeno is a company building two-wheelers for bike taxi and ride sharing. Baaz is building a scooter for food delivery. Exponent is providing batteries for commercial vehicles, buses, trucks, etc. Anything where the vehicle itself generates revenue for the owner is a commercial vehicle. And so everything from quick commerce, food, delivery, logistics, ride sharing, public transportation, intercity buses, freight – these are commercial vehicles."

AdvantEdge specialises in early-stage investments within mobility, EVs and the energy sector.

30 Mobility Deals Including Rapido

The fund has backed nearly 30 mobility companies to date, including the prominent Rapido bike taxi service. It has additionally invested in approximately 15 non-mobility firms, though these represent smaller capital commitments.

"80 per cent of both the funds (Fund I and Fund II) have gone towards mobility, 20 per cent has gone to non-mobility, including digital savings platform Jar. It is a money savings app. Then, Ambak, which is a real estate funding platform. These are the key non-mobility ones where we have also invested," Khattar noted.

AdvantEdge's Headcount To Grow

Discussing the fund's operational footprint in India, Khattar revealed a deliberately compact structure. "We have eight people. Six are sitting in Delhi. Once is in Bangalore, and one is in Ahmedabad. We had started with two people. It'll probably end with about 10 people by next year."