The electric two-wheeler sector is witnessing a sharp return of big-ticket capital, with investors doubling down on mature and scale-ready manufacturers even as early-stage funding dries up. The industry has raised $1.4 billion so far in 2025, a 27 per cent jump over last year but across barely half the number of deals, signalling a decisive shift toward high-conviction bets in a market where EV penetration remains just 8 per cent.

Late-stage funding has surged 105 per cent year-on-year (y-o-y), driven by large rounds in EV makers, which alone accounted for $1.2 billion, according to Tracxn.

Ranjeet Shetye, Venture Partner at YourNest VC & MD at Everstream Analytics, said strong policy support and rising fuel costs heightened environmental consciousness, and rapid advances in battery tec

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