Pune-based Kinetic Green Energy & Power Solutions Ltd. is betting on electric vehicles (EV) and plans to raise $35 million (₹200 crore) through private equity to fund for its ventures.
“We are in advanced stages of negotiation with private equity players to raise the amount. It would be finalised within the next two to three months,” said Sulajja Firodia Motwani, founder and CEO, Kinetic Green Energy. However, it would not lead to a major dilution of our stake. We will still hold a majority stake,” she said.
The funds would be used for research and development activities, product development and increasing production capacity.
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Founded in 2015, Kinetic Green Energy is the latest venture from the Kinetic and Firodia Group. It offers a full range of battery-operated three-wheelers such as e-autos, e-carts, buggies and cargo vehicles.
“In the last four years, we have sold 25,000 vehicles, more than that of organised players. Our vehicles have 90% indigenisation from the first e-rickshaw with a 70% import content,” she said.
The company has an order book for 20,000 vehicles. For FY21, the company plans to sell 23,000 units, equivalent to a turnover of ₹400 crore against an estimated revenue of ₹150 crore for FY20.
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Stating that lot of disruption was happening in the automobile industry, she said: “The cost of lithium-ion batteries in EVs is coming down drastically compared to vehicles with internal combustion engines (ICE). Going forward, EVs with batteries will cost less than vehicles without fuel at point of sale.
Asserting that the Indian market currently was not conducive for electric cars, she said intra-city vehicles, that could ply up to 100 km such as two/three wheelers and buses, will be favoured by the general public. By 2030-35, about 40% of vehicles would be electric, she observed.