Kinetic Green, electric vehicle arm of the Kinetic Group that manufactured Luna, a moped vehicle popular in the 1970s, has raised $25 million in capital from global private equity firm Greater Pacific Capital (GPC) in its first external round of funding.
Kinetic Green, which started manufacturing EVs in 2016, has raised this capital as a part of a larger $40 million Series A round, which it aims to close in 2024. GPC has invested in the company through a combination of instruments including common equity shares, convertible preference shares and debentures.
Nandan Desai, managing director and co-head of India for GPC, will join Kinetic Green’s board of directors, as a part of the transaction.
“The Kinetic Group has been at the forefront of innovation in India’s automotive sector for the last 50 years and with Kinetic Green and products such as the e-Luna, is well positioned to provide innovative and aspirational electric vehicles to India’s large, young and growing population,” said Ketan Patel, founder and chief executive of GPC.
The company, led by Sulajja Firodia Motwani, third-generation member of the Firodia family that started Kinetic Engineering, will use the capital to scale production, marketing and distribution of its current products. It plans to grow its three and two-wheeler business, it said.
“The partnership with Greater Pacific Capital marks a pivotal moment for Kinetic Green. This investment will enable us to enhance our capabilities, drive zero-emission transportation and contribute significantly to India’s energy transition goals,” Motwani said in a statement.
The Pune-based company offers a range of EVs including, three-wheelers - both cargo and passenger - and 2-wheelers, which were launched recently. The company also sells electric golf-carts and buggies, as a part of its joint venture with Italy-based luxury brand, Tonino Lamborghini.
So far, the company claims to have cumulatively sold over 100,000 EVs worth nearly Rs 1,000 crore since its inception. It currently has a manufacturing facility in Supa in Maharashtra.
India’s nascent but growing EV space has received a lot of interest from domestic and global investors. Last week, the two-wheeler EV maker Ola Electric debuted on the stock market, with shares jumping 20% on its forst day of trade.
Last month, ResponsAbility, MS Dhoni invested in pre-Series B funding of another homegrown brand BluSmart.
