Kinetic Green Raises $25 Million To Accelerate Electric Vehicle Production

Updated: Tuesday, August 13, 2024, 11:16 [IST]

Kinetic Green, a prominent Indian electric vehicle (EV) manufacturer, has secured a US$25 million investment from Greater Pacific Capital (GPC), a global private equity firm. This funding is part of an overall Series A fundraise aimed at reaching up to US$40 million.

Kinetic Green entered the EV market in 2016 as a pioneering original equipment manufacturer (OEM). The company is led by Sulajja Firodia Motwani, a third-generation member of the Firodia family, founders of the Kinetic Group. Over the past 50 years, Kinetic has been a key player in India's automotive sector, known for iconic products like the Kinetic Luna and Kinetic Honda, with over 10 million vehicles sold.

Investment Details and Market Position

The investment from GPC includes common equity shares, convertible preference shares, and debentures. As part of this deal, Nandan Desai, Managing Director and Co-Head of India for GPC, will join Kinetic Green's Board of Directors. The company is also in discussions with other potential investors to secure an additional US$15 million by 2024.

Kinetic Green has established itself as a leading player in India's growing EV market. The company offers a range of products including electric two-wheelers, three-wheelers, and golf carts. To date, it has sold over 100,000 EVs and generated cumulative sales exceeding ₹1000 Crores (₹10 billion).

Expansion Plans and Product Development

The funds will be used to scale up production at Kinetic Green's manufacturing facility in Supa, Maharashtra. Additionally, the company plans to enhance marketing and distribution efforts for its current products, including the recently launched E-Luna. Launched in January 2024 in New Delhi with Union Minister Nitin Gadkari present, the E-Luna has received positive market feedback across India.

Kinetic Green aims to expand its dealership network and sell over 100,000 EVs in the coming year. The company also plans to focus on global expansion through its premium golf cart range developed in collaboration with the Lamborghini family of Italy.

Market Context and Future Goals

India's EV market is at a crucial juncture with approximately 6% penetration. Electric two-wheelers and three-wheelers are driving this growth. Government policies aim for 30% EV penetration by 2030. Kinetic Green is well-positioned to lead this transition with its proven product portfolio and capabilities.

Sulajja Firodia Motwani expressed enthusiasm about GPC's investment: "The partnership with Greater Pacific Capital marks a pivotal moment for Kinetic Green. Our mission has always been to lead the transition to sustainable mobility and make electric vehicles accessible to a broader audience."

Ketan Patel, Founder and CEO of GPC, commented: "India's successful energy transition is critical for the World to meet its Net Zero objectives... We are excited to partner with Kinetic Green to help them rapidly scale their business across the country."

DriveSpark Thinks

As India progresses towards its 2030 EV targets, Kinetic Green aims to be a significant contributor to this transformation. The company's focus on zero-emission transportation aligns with India's energy transition goals.