In a market littered with the wreckage of cash-burning EV startups, PURE EV bets on financial discipline and engineering grit. But can its playbook withstand competition from legacy players, funding hurdles and heavy import reliance?
02 Jun 2025 | 1828 Views | By Darshan Nakhwa & Ketan Thakkar
India’s electric two-wheeler market is a brutal arena, a graveyard of over-hyped startups that soared on venture capital only to crash when subsidies vanished or batteries caught fire. Amid this chaos, PURE EV, a 2018 spawn of IIT Hyderabad’s incubation labs, is an outlier. Founded by IITians Nishanth Dongari and ...
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India’s electric two-wheeler market is a brutal arena, a graveyard of over-hyped startups that soared on venture capital only to crash when subsidies vanished or batteries caught fire. Amid this chaos, PURE EV, a 2018 spawn of IIT Hyderabad’s incubation labs, is an outlier. Founded by IITians Nishanth Dongari and Rohit Vadera, PURE (Power Using Renewable Energy) began with a scrappy ethos, retrofitting old scooters with electric kits pieced together from off-the-shelf wheels, motors, and electronics.
“We spent two years tinkering on campus, testing prototypes before we even thought of selling,” Dongari recalls. That restraint—prioritizing engineering rigor over market hype—set PURE apart in the frenetic startup pack. The company is profitable, subsidy-free, and scaling deliberately. But with modest sales of 8,982 units generating 150 crore revenue in FY25 against Ola Electric’s 3.44 lakh, dependence on imported battery cells, and increasing competition from giants like Bajaj Auto and TVS Motor, PURE’s slow-and-steady approach raises a nagging question: Can a minnow thrive among sharks?
While competitors like Ola Electric chased volume with aggressive pricing, PURE doubled down on financial hygiene. In FY24, it posted a profit after tax (PAT) of Rs 5.3 lakh, reversing a Rs 9.3 crore loss in FY23, with EBITDA margins climbing from 1% to 13%. Compare that to Ola’s Rs 1,584.4 crore loss on Rs 5,243.3 crore revenue and Ather’s Rs 1,059.7 crore deficit on topline of Rs 1,753.8 crore. PURE’s revenue, Rs 131 crore in FY24 (down from Rs 141 crore in FY23 and Rs 226.3 crore in FY22), is modest, but Dongari sees it as a foundation for endurance. “We didn’t come to be the biggest. We came to last,” he says.
Yes, it is not fair to compare a start-up giant Ola, which has pumped in a huge amount of money and attained scale but has also seen steep losses. The comparison is on the key principles of running a business. This profit-first approach stems from a pact between Dongari and Vadera. “From day one, we agreed: no compromises on financial hygiene,” Dongari says. “Not because investors were watching, but because we were accountable to each other.”
That ethos helped PURE avoid the cash-burn trap that has felled many EV startups. Yet, profitability comes at a cost. PURE’s 76,000 vehicle sales since inception pale against Ola’s dominance, and raises a different kind of question: “They’re profitable, but at what scale?” asks Rakesh Sharma, a Chennai-based EV industry consultant. “Legacy players like Bajaj and TVS have deeper pockets, wider dealer networks, and manufacturing muscle.
PURE risks being a niche player in a mass-market game.” PURE’s annual run rate of Rs 150 crore over the past three years is respectable, but Ola’s Rs 5,243.3 crore revenue underscores the chasm. “Scale drives cost advantages and brand visibility,” says Sharma. “PURE’s discipline is admirable, but without volume, they’re vulnerable.”
Sidestepping the Subsidy Trap
PURE’s refusal to lean on government subsidies is both its strength and its gamble. While rivals rode the FAME-II subsidy wave to fuel growth, PURE held firm, raising its average scooter price from Rs 68,000 to Rs 1 lakh to reflect rising input costs. “We never signed up for government subsidies. Not because we didn’t need the money, but because we believed a long-term business cannot be built on temporary incentives,” Dongari says.
“We wanted a model that could stand on its own.” When subsidies began phasing out in 2023, competitors like Ola faced pricing pressures, forcing them to hike rates or absorb losses. PURE, unencumbered, sailed through unscathed. This independence, however, meant ceding market share. Without the cushion of subsidies or aggressive discounts, PURE's premium pricing may deter India’s price-sensitive buyers. With their vast dealer networks and brand equity, legacy players like Hero MotoCorp, Bajaj Auto, and TVS Motor Co are now pushing affordable EVs, intensifying the pressure.
For instance, Bajaj’s Chetak and TVS’s iQube leverage established supply chains and service networks, advantages PURE struggles to match with its 75 dealerships. “In a market where affordability drives adoption, PURE’s pricing could alienate the masses,” concurs Priya Mehta, a Mumbai-based EV consultant.
Engineering Grit Meets Market Firestorms
The heavy odds notwithstanding, PURE’s engineering obsession is its calling card. Its 2025 X Platform 3.0, featuring predictive AI and cloud connectivity, boosts torque by 25% and optimizes real-time motor and battery performance. The company currently offers models like the Pluto 7G, ePluto 7G Max, ecoDryft 350, ETrance Neo+, and eTryst X that deliver 90–170 km per charge, with some customers even clocking cumulative mileage of 70,000 km. “Mileage means PURE,” Dongari says, crediting word-of-mouth for driving referrals.
Company data shows its vehicles average 33,000 km per customer, with a “phenomenal” referral rate—one happy buyer brings in four or five others. Yet, engineering couldn’t shield PURE from the 2022 EV fire crisis that rocked the industry. An internal audit revealed a surprising culprit: over 60% of incidents were tied to underused vehicles, often improperly stored or rarely charged. “It was personal,” Dongari says. “As engineers, we believe in zero tolerance for safety failures—mechanical, electrical, or thermal.”
PURE took full ownership, revamping battery management systems, thermal controls, and after-sales protocols. The measures restored trust, but the episode exposed vulnerabilities. “No startup is immune to systemic risks,” says an industry insider. “One more misstep could erode their hard-earned reputation.” The crisis also highlighted PURE’s customer-centric ethos. “We never pointed fingers at users,” Dongari emphasizes. “They trusted us despite no subsidies or discounts. We owe them everything.”
The Import Chokehold
PURE’s ambition to localize 90% of its supply chain by 2027 is bold but fraught. Starting at 90% imports, it’s reduced that to 40%, with in-house charger production and plans for motors by 2026. Partnerships with IIT Hyderabad, ARCI, a U.S.-based battery tech firm, and UKbased PDSL aim to crack solid-state batteries with highviscosity gel or solid-state electrolytes for better energy density and safety. “Localisation isn’t just cost-cutting; its resilience,” Dongari says. “It’s about quality, scalability, and user experience.”
Yet, reliance on imported battery cells remains a critical weak link. “Battery cells are the heart of an EV, and India’s ecosystem is years behind,” says Anil Gupta, a supply chain expert. “Global giants like CATL and LG Chem dominate, and domestic production is nascent.” PURE’s localization hinges on unproven partnerships, a fledgling domestic supply chain and continued funding. “PURE’s frugality is a strength, but scaling localization needs serious capital,” Gupta warns.
“Startups die when cash runs dry.” PURE’s collaboration with a chip maker for highperformance computing chips to power its AI-driven features is promising but nascent. “Performance is about sharpness and processing speed,” Dongari says. Still, moving from outsourced to in-house motor production and partial cell-level manufacturing through partnerships is a tall order.
Expansion Dreams, Funding Realities
PURE’s growth plans are ambitious. Its Sangareddy, Telangana plant, with a 40,000-unit annual capacity, operates at 35–45% utilization. “We can hit 50,000– 60,000 units without new capex by adding a second shift,” Dongari says. A second facility, with a Rs 400 crore investment (Rs 150 crore for Phase 1, Rs 250 crore for Phase 2), aims for 5 lakh units by FY30. Phase 1, requiring 30–35 acres, will add 100,000 units; Phase 2, expanding to 100 acres, will add 350,000.
PURE is scouting locations in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, with Telangana slightly ahead. “It’s not just about incentives—it’s about balance sheet impact,” Funding, however, is a hurdle. PURE has raised Rs 220 crore, starting with seed funding from IIT Hyderabad in 2018, followed by rounds led by Natco Pharma’s family office and Laurus Labs. Founders still hold over 75% of the company, a rarity in a VC-heavy sector.
A $25 million equity round is in talks, with due diligence underway, but closure is months away. “Startups fold when funding dries up,” warns Priya Mehta. “PURE’s lean model is resilient, but scaling to Rs 300 crore revenue by FY26 demands serious cash.”
PURE’s 75 dealerships, with a target of 120 by FY26, and its 29% sales growth in FY24 show promise, but scaling up against Ola’s 4,000 touchpoints and Bajaj’s 6,000-plus dealers remains daunting. The PuREPower energy storage arm, launched in 2025 for residential, commercial, and grid-scale applications, diversifies revenue. Yet, entering a new vertical a stretches resources thin. “Diversification is smart, but it’s a distraction if underfunded,” says Sharma.
A Global Suitor, No Sure Bet
A global four-wheeler OEM is eyeing a strategic stake, drawn to PURE’s tech and customer loyalty. “We’ve had six or seven rounds of talks, but it’s early,” Dongari says. A deal could unlock global supply chains, engineering support, and export channels, giving PURE a shot at international markets. But legacy automakers are notoriously selective. “If PURE doesn’t align with their global strategy, talks could fizzle,” says an industry veteran.
“Startups often overestimate such deals.” PURE’s disciplined marathon—profitable, engineeringled, customer-centric—stands out in a sprint-obsessed market. 8,982 units sales in FY25, up 29%, and a Rs 150 crore run rate signal steady growth. The PuREPower arm broadens its horizons. But legacy giants, funding risks, and import reliance loom large. “This isn’t a sprint,” Dongari says. “It’s about endurance.” The question is whether endurance can outlast a market that often buries the cautious.