Ratan Tata-owned Electrodrive Powertrain Solutions Ltd, or Electra EV, on Thursday raised over $25 million (about Rs 207 crore) from GEF Capital Partners’ South Asia Growth Fund II for a minority stake in the EV solutions company.
The Pune-based player looks to deploy the fresh capital towards expanding its product portfolio across electric three and four-wheelers, agricultural applications and other EV segments to serve both domestic and international manufacturers and automotive suppliers. Additionally, it plans to bolster its design, testing and prototyping capabilities apart from increasing its production capacity, the company said in a statement.
“This fund raise provides us with both financial wherewithal and a like-minded partner like GEF Capital to help us continuously innovate, acquire new customers in India and overseas, thereby achieving our vision of transforming the global movement towards cleaner fuels,” said Samir Yajnik, the EV player’s executive director.
Founded in 2017, Electra EV is backed by Ratan Tata, and offers powertrain solutions to customers in both passenger and commercial vehicle segments. Its offerings include end-to-end powertrain solutions like battery packs, e-traction systems and integrated electronics, sub-systems, and components across multiple segments, among others. Its powertrain solutions have been installed inTata Xpres-T (fleet) and Tata Ace EV.
This investment was made from India-focused clean energy private equity player GEF Capital Partners’ South Asia Growth Fund II, which saw its final close in March after it raised nearly $200 million from a clutch of around eight global investors including CDC Group of UK, European Investment Bank, Dutch investment firm FMO, among others.
“The EV ecosystem is currently at a pivotal stage, and we believe Electra EV’s differentiated proposition of high-end performance, safety and affordability provides a strong growth opportunity. We are excited to partner with Electra EV in its next phase of growth and development,” GEF Capital’s managing partner Sridhar Narayan commented on the investment.
With a similar investment rationale, Capital A, an early-stage fund, earlier told VCCircle about its plans to accelerate investment in the new-age EV startups, while being particularly bullish on powertrains.
