Japanese EV Startup Terra Motors Raises $28 M in Series C Funding for Infrastructure Expansion

Japanese electric vehicle (EV) startup Terra Motors has successfully raised 4 billion yen ($28 million) in a recent Series C funding round. The funding was secured through the issuance of new shares to investors, including Osaka Gas, Century Tokyo, Sumitomo Mitsui Auto Service, and Pegasus Tech Ventures.

Founded in 2010, Terra Motors is renowned for its electric motorcycles and its efforts in providing EV charging infrastructure through its product called “Terra Charge.” Based in Tokyo, the company aims to make EVs more accessible and convenient by offering comprehensive charging infrastructure solutions.

Terra Charge includes a dedicated app for scheduling EV charging and handling payments, a managed cloud platform, and installation services for the necessary equipment. The service has gained traction among various entities, such as local governments, condominiums, hotels, and golf courses.

Japan’s goal of achieving carbon neutrality by 2050 and transitioning to a decarbonized power supply underscores the importance of expanding the adoption of EVs. However, the lack of consensus on initial and running costs associated with EV charging infrastructure has hindered widespread adoption. This challenge has impeded the introduction of charging infrastructure without a significant user base of EVs.

Recognizing the significance of addressing this issue, Terra Motors has proactively taken steps to overcome obstacles in EV infrastructure development. By providing an infrastructure solution that minimizes costs, the company aims to bridge the gap between the need for charging infrastructure and the limited usage of EVs. This approach seeks to facilitate consensus building and pave the way for broader acceptance and adoption of EVs in Japan.

Terra Motors’ EV charging infrastructure has gained significant traction in the market since its introduction. The company recently announced receiving over 4,700 unit orders as of June 27, 2023. With this, the company has ranked as the top provider of EV charging infrastructure in the domestic market.

The funds raised in the recent funding round will play a crucial role in accelerating the expansion of Terra Motors’ charging infrastructure network. A significant portion of the funds will be allocated to further developing software, hardware, and services. Additionally, the company plans to strengthen its recruitment efforts and organizational structure to support its endeavors in areas such as EV-based energy management, electricity supply, and demand adjustment through demand response.