Delhi-based all-electric cab service company Evera has raised $7 million from investors led by Germany's IEG Investment Banking Group.

Nimish Trivedi, the company’s cofounder says, “Evera will use the money for technology development and marketing and promotion of the brand to grow its B2C business.”

Direct Capital, a subsidiary of Thailand's Devonshire Capital, and Singapore's Westova Global were the other investors in the funding round.

The funding comes at a time when competition in the country’s electric vehicle ride-hailing space is picking up--Uber and Ola are keen on entering the segment and will rival local company BluSmart.

Evera has B2C and B2B offerings, with B2C customers largely coming from the airport category and the B2B customers being corporate companies that would want a pickup and drop facility for their employees.

In the B2C space, Evera is pitted against deep-pocketed players such as BP Ventures-backed BluSmart, as well as ride-hailing giants Uber and SoftBank-backed Ola, both of which have announced plans to deploy EVs in the near future.

The company will continue its focus on increasing its presence in Delhi, primarily targeting air passengers.

“There are massive footfalls in all the three terminals of the Delhi airport and we want to increase our focus there, and we also have a mix of B2B customers and we are finalizing deals with more B2B customers,” Trivedi says.

Late last year, Evera partnered with Delhi International Airport Ltd to start its EV taxi services at the airport’s Terminal 3. The company had also partnered with online travel agency MakeMyTrip to help consumers’ book cabs.

“Transportation is one of the major reasons for environmental pollution. Brands like Evera came with a strong agenda to make the environment pollution free. Cab aggregator is a growing market in India, and also trending globally, and we are investing in EV cab services which will definitely help us in investing in greener tomorrow,” says Arthit Narula, partner, Direct Capital.