Oor Cabs Secures ₹25 Crore from Tamil Nadu Green Fund: Trichy’s EV Startup Powers Regional Mobility Revolution
In a significant boost to Tamil Nadu’s green mobility ambitions, a Trichy-based electric vehicle startup has secured ₹25 crore in funding from the state’s dedicated Green Climate Fund, marking one of the largest state-level investments in a regional EV startup this year.
Oor Cabs, an electric autorickshaw service operating in Tier-2 cities, received the investment from the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) under the Tamil Nadu Green Climate Fund scheme. The announcement was made during the TN Climate Summit in Chennai last week, where the startup was selected for its potential to transform last-mile connectivity in semi-urban and rural areas .
This investment represents a strategic shift in Tamil Nadu’s EV push—moving beyond Chennai to nurture regional innovation hubs like Trichy (Tiruchirappalli), which is emerging as a strong contender in EV manufacturing, components, and last-mile mobility solutions .
The Funding: Structure and Impact
Investment Details
| Aspect | Details |
|---|---|
| Amount | ₹25 crore |
| Source | Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) under Tamil Nadu Green Climate Fund |
| Recipient | Oor Cabs, Trichy-based EV mobility startup |
| Announcement | TN Climate Summit, Chennai (February 2026) |
How the Funds Will Be Used
1. Fleet Expansion
- Add at least 300 e-autorickshaws within a year across the state
- For Trichy city alone, 100 e-autos before May 2026 (phased expansion to 300+)
- Expand to Madurai, Tirunelveli, Karaikudi, and Thanjavur in subsequent phases
2. Charging Infrastructure Development
- Set up charging stations in three different areas in Trichy city
- Explore solar-powered charging points to achieve net-zero emissions in the future
- Build infrastructure to support expanded fleet and reduce downtime
3. AI-Powered Fleet Management
- Develop and deploy AI-powered tools to predict and distribute fleet based on demand
- Optimize routes to reduce passenger waiting time (currently averaging 15+ minutes)
- Enable predictive maintenance, driver allocation, and energy efficiency
4. Driver Recruitment and Training
- Recruit and train more drivers with special focus on women
- Offer monthly salary starting from ₹16,500 (stable income vs. variable earnings in traditional autos)
- Create inclusive employment opportunities in the mobility sector
Oor Cabs: The Startup Behind the Investment
Current Operations
Oor Cabs currently owns and operates 40 e-autos in Trichy city, employing drivers on monthly salary—a significant departure from the traditional rental model where drivers pay owners for vehicle use.
Key Metrics:
- 40 e-autos currently operational in Trichy
- 16 women drivers already employed (40% of workforce)
- Up to 500 rides per day served
- 1,100+ daily bookings received (significant unmet demand)
- WhatsApp and mobile app booking platforms
The Demand Challenge
The startup currently meets only 500 of the 1,100 daily bookings received, with passenger waiting times sometimes exceeding 15 minutes because e-autos take time to reach pickup points . This unmet demand underscores the massive opportunity in Tier-2 cities—and the critical need for AI-powered fleet optimization.
Founder’s Vision
Maria Antony, founder and CEO of Oor Cabs, articulated the growth roadmap:
*”For Trichy, we will add 100 e-autos before May 2026. Women auto drivers with a monthly salary starting from ₹16,500 will be recruited. Gradually, we will expand to Madurai, Tirunelveli, Karaikudi, and Thanjavur.”*
On the technology front, he added:
“We are working on Artificial Intelligence (AI)-powered tools to predict and distribute our fleet in different areas of the city based on demand, to reduce passengers’ waiting time. The demand is huge in tier II cities.”
AI Integration: Smarter Mobility at Scale
A key differentiator in Oor Cabs’ strategy is the integration of AI-powered fleet management tools, funded partly through this investment.
What AI Will Enable
| Function | Impact |
|---|---|
| Demand forecasting | Predict high-demand areas and times to pre-position fleet |
| Route optimization | Reduce passenger wait times and vehicle idle time |
| Driver allocation | Match drivers to demand patterns efficiently |
| Predictive maintenance | Anticipate vehicle issues before they cause downtime |
| Energy efficiency | Optimize charging schedules and battery usage |
The Customer Experience Goal
The current 15-minute average wait time is a friction point Oor Cabs aims to eliminate. By using AI to predict demand and distribute fleet intelligently, the startup targets:
- Reduced wait times to under 5 minutes
- Higher vehicle utilization and driver earnings
- Improved customer satisfaction and repeat usage
- Data-driven expansion to new cities
Charging Infrastructure: Building for Scale
A portion of the investment will fund charging station infrastructure—a critical enabler for fleet expansion.
Immediate Plans
- Three charging points in different areas of Trichy city
- Strategically located to minimize deadhead travel for drivers
- Fast chargers to improve vehicle uptime
Long-Term Vision
- Solar-powered charging points to achieve net-zero emissions
- Expand charging network alongside fleet expansion into new cities
- Potential for open access to other EV operators (creating additional revenue)
Women in EV: Inclusive Employment as Core Mission
Oor Cabs’ commitment to women drivers is noteworthy and aligns with broader trends in Tamil Nadu’s EV ecosystem.
Current Impact
- 16 women drivers already employed (out of 40 total)
- 40% female workforce in a traditionally male-dominated sector
Expansion Plans
- Aggressive recruitment of women drivers with fleet expansion
- Monthly salary starting from ₹16,500 (financial stability and dignity)
- Training programs for safe and professional driving
Broader Context
This initiative echoes similar efforts in the region. Cholan Tours, another Trichy-headquartered company, launched its Women E-Auto Driver Program in Madurai in December 2025, providing structured training in driving, customer service, and tourism knowledge . The program was inaugurated in the presence of senior government officials and aims to expand across Tamil Nadu.
The convergence of multiple initiatives suggests growing momentum for women-led mobility in the state—a trend Oor Cabs is well-positioned to lead.
Tamil Nadu’s EV Push: A Strategic Context
This investment is part of Tamil Nadu’s broader strategy to accelerate EV adoption and position itself as India’s EV capital.
State EV Policy Incentives
Tamil Nadu was among the first states to announce a comprehensive EV policy, offering:
- Subsidies for EV purchases
- Incentives for manufacturing and component production
- Charging infrastructure support
- R&D and innovation grants
Green Climate Fund
The Tamil Nadu Green Climate Fund, managed by TNIFMC, is designed to:
- Support climate-friendly projects across sectors
- Provide patient capital for green ventures
- Catalyze private investment in sustainability
- Create employment in green industries
Regional Innovation Hubs
Crucially, Tamil Nadu is nurturing innovation beyond Chennai:
- Trichy (Tiruchirappalli) emerging as an EV manufacturing and mobility hub
- Coimbatore known for engineering and components
- Madurai, Tirunelveli, Karaikudi, Thanjavur targeted for EV expansion
This decentralized approach ensures that the benefits of the EV transition reach semi-urban and rural areas, where affordable last-mile connectivity remains a critical challenge.
The Broader EV Ecosystem in Tamil Nadu
Oor Cabs’ funding is part of a larger wave of EV activity in the state:
Recent Developments
Key Themes
- Retrofit Revolution: E DADDY’s ARAI-approved retrofit kit enables conversion of existing fuel-powered autos to electric at ₹1/km running cost—creating a pathway for mass electrification without new vehicle purchases .
- Inclusive Employment: Multiple initiatives focus on women drivers, creating dignified livelihoods and promoting gender diversity in mobility.
- Tier-2 Focus: Unlike the first wave of EV startups concentrated in metros, new initiatives target semi-urban and rural India where last-mile connectivity gaps are largest.
- Technology Integration: AI, IoT, and data analytics are becoming integral to EV operations—not optional add-ons.
What This Means for Different Stakeholders
For Founders
- State funding is available for well-executed regional ventures—not just Bengaluru-based startups
- Solve real problems (last-mile connectivity, employment, sustainability) to attract government support
- Think beyond metros—Tier-2/3 cities have massive unmet demand and less competition
- Integrate technology (AI, data) to demonstrate scalability and efficiency
For Investors
- State green funds are becoming significant sources of growth capital
- Co-investment opportunities exist with government bodies
- Regional startups offer attractive entry valuations and growth trajectories
- ESG-aligned investments are increasingly mainstream
For Policymakers
- Targeted funding can catalyze ecosystem development in non-metro cities
- Women-focused initiatives create visible social impact alongside environmental benefits
- AI integration should be encouraged through grants and technical support
- Charging infrastructure remains a critical bottleneck requiring continued attention
For Drivers (Especially Women)
- Stable salaried employment is becoming available in the EV sector
- Dignified work with training and professional support
- Career progression opportunities as companies scale
- Role models emerging for next generation
Challenges Ahead
1. Charging Infrastructure
Even with investment, charging networks need to keep pace with fleet expansion. Oor Cabs’ plan for three charging points in Trichy is a start, but as the fleet grows to 300+, more capacity will be needed.
2. Vehicle Availability
Scaling from 40 to 300+ e-autos requires reliable vehicle supply. Partnerships with OEMs or retrofit providers (like E DADDY) may be necessary .
3. Driver Recruitment
Finding and training enough drivers—especially women—at scale requires structured programs and sustained effort.
4. AI Development
Building effective AI tools for demand prediction and fleet optimization requires technical talent and real-world data refinement.
5. Competition
As the opportunity becomes visible, competitors will enter. Oor Cabs’ first-mover advantage in Trichy needs to be leveraged for rapid expansion.
6. Operational Complexity
Managing a larger fleet across multiple cities introduces complexity in maintenance, driver management, and customer service.
Conclusion: A Model for Regional EV Growth
Oor Cabs’ ₹25 crore funding from Tamil Nadu’s Green Climate Fund is more than a single startup’s success story—it’s a model for how state governments can catalyze sustainable mobility in Tier-2 cities.
The investment demonstrates that:
- Regional startups can attract significant institutional funding
- AI and EV integration is essential, not optional
- Women’s employment can be a core business strategy, not just CSR
- Last-mile connectivity in semi-urban India is a massive opportunity
- State green funds are powerful tools for ecosystem development
For Trichy, this investment validates its emergence as an EV hub. For Tamil Nadu, it proves that the EV transition can be inclusive, technologically advanced, and geographically distributed. For India, it offers a template for how state-level initiatives can complement national missions like the IndiaAI Mission and FAME schemes.
As Maria Antony and his team at Oor Cabs scale from 40 to 300+ e-autos, from Trichy to multiple Tier-2 cities, they’re not just building a business—they’re demonstrating that sustainable mobility can work at population scale, create dignified employment, and serve communities often overlooked by the startup ecosystem.
The road ahead has challenges, but the direction is clear: Tamil Nadu’s EV future is bright, and it’s being built not just in Chennai, but in Trichy, Madurai, and beyond.
