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3ev Industries secures Series A investment of INR 96 crore from Mahanagar Gas Limited

3ev Industries Pvt. Ltd (3ev), an electric vehicle Original Equipment Manufacturer (OEM) headquartered in Bangalore, has concluded a binding Share Subscription Agreement (SSA) for the entire Series A equity investment of INR 96 crore from Mahanagar Gas Limited (MGL). The agreement, signed at MGL’s Mumbai offices on Monday, February 12th, 2024, states that the investment will be made in installments and follows standard closing rules. The first part of the investment is likely to occur by the end of this month. Khaitan & Co. acted as the legal advisor, and HDFC Bank provided transaction advisory services to 3ev.

3ev manufactures L5 category three-wheel cargo, passenger, and ICE-to-EV converted electric vehicles. Its EVs are used to serve the transportation needs of e-commerce, retail, and last-mile logistics companies. The investment will be used to increase production capacity, support R&D projects focused on electronics efficiency, and develop aftermarket services including Battery-as-a-Service (BaaS), as mentioned by the company statement.

Mr Peter Voelkner, Managing Director of 3ev, expressed gratitude for MGL’s investment, highlighting the alignment between their businesses in the EV sector. He emphasized the synergies, particularly in the emerging battery ecosystem and 3ev’s Battery-as-a-Service model. Voelkner noted their focus on total life-cycle management, enabling competitive Total Cost of Ownership (TCO) for EV users, and sees opportunities to accelerate EV adoption with MGL’s support. He added, “3ev has achieved proof of concept for its heavy-duty cargo, passenger, and ICE-to-EV converted electric vehicles. The investment from MGL will allow us to scale up production to meet customer demand and expand our BaaS services into new territories.”

Speaking on the occasion, Mr. Ashu Shinghal, Managing Director of MGL said, “MGL, since its inception, had been a proponent of greener environment. This investment would help strengthen the EV ecosystem for the last mile logistics segment, facilitate faster adoption primarily replacing diesel vehicles and significantly reduce the carbon footprint. MGL can additionally facilitate setting up of charging or swapping facilities which can help 3ev expand its business through assured charging infrastructure to its customers. MGL is strengthening its core sector business and simultaneously positioning itself in the emerging sectors. Investment in the EV sector will further supplement our presence in the energy value chain. MGL maintains a holistic view in the EV sector and believes that participation in the EV value chain is critical to support the sector during its emerging phase.”

Also read: How does 3eco System operate its 400+ EV fleet to provide hyper-local services in India

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