Motor secures $7M funding round
Indianapolis-based Motor has closed on a $7 million Series A round of funding. The company, which has developed an electric vehicle subscription platform, said this month it will use the funding to refine the platform and expand into new markets.
Motor is a subsidiary of Virginia-based AES Corp. (NYSE: AES), which is also the parent of Indy-based utility AES Indiana.
The company’s platform offers a subscription service in which users can drive an EV for as long as they want while under the subscription, with the option of buying the car if they wish.
The platform has several subscription tiers, which include insurance, roadside assistance, maintenance, and EV charger and installation, among other services.
The funding round was co-led by AES Corp. and Mitsubishi Corp.
“We are excited to welcome Mitsubishi Corporation as an investor in Motor because of its high alignment with our team’s purpose: to decarbonize personal mobility,” Motor CEO Praveen Kathpal said in written remarks. “AES’ continued participation as an investor is meaningful because of its collaborative approach to co-creating solutions in our initial markets that are broadly relevant to utilities in the United States.”
In addition to offering the subscription service, Motor is partnering with electric utilities to implement an EV adoption program aimed at making it easier for customers to start driving electric.
In March 2021, Motor announced a partnership with AES Indiana to provide a new EV charging rate. AES Indiana CEO Kristina Lund said they have already seen benefits from the partnership.
“Our partnership with Motor has contributed significantly to EV adoption in our market, with an increase of more than 20% in Motor’s launch year in the Indianapolis area,” Lund said. “Motor’s seamless signup process enrolls more than 75% of eligible drivers into managed charging programs, an outcome that benefits all customers.”
Motor has 11 employees and plans to add three more by the end of the first quarter. The company is currently operating in Indianapolis and Dayton, Ohio, with plans for expansion to be announced at a later date.