Kinetic Green raises USD 25M from Greater Pacific Capital

Kinetic Green, an Indian manufacturer of electric vehicles (EVs), announced that it has secured a USD 25 million (INR 212 Crore) investment from Greater Pacific Capital (GPC), a UK-based private equity firm, as part of its planned USD 40 million Series A fundraise.

GPC’s investment in Kinetic Green includes common equity shares, convertible preference shares, and debentures. As part of the investment, 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 USD 15 million in funding, which it aims to complete during 2024.

The company plans to use the funds to scale up production at its facility in Supa, Maharashtra, market and distribute its current products, including the recently-launched E-Luna, and develop new products. The E-Luna was launched in January 2024 in New Delhi and has seen positive market reception as a personal mobility solution and for use in the e-commerce and home delivery segment.

Kinetic Green, which has sold over 100,000 EVs with cumulative sales exceeding INR 1000 Crores (INR 10 billion), is expanding its sales of electric two- and three-wheelers in India and pursuing global growth, particularly with its premium golf cart range developed through a joint venture with the Lamborghini family of Italy.

Kinetic Green, which entered the EV sector in 2016 under the leadership of Sulajja Firodia Motwani, a third-generation member of the Firodia family, is known for its contributions to India’s automotive industry, including the Kinetic Luna and Kinetic Honda, with over 10 million vehicles sold to date. This equity fundraise marks the company’s first external investment, coinciding with a growing Indian EV market, where EV penetration has reached 6%, driven by electric two-wheelers and three-wheelers. With its established product portfolio and capabilities, Kinetic Green plans to expand its operations, aiming to sell over 100,000 EVs in the coming year.

Kinetic Green’s Founder and CEO Sulajja Firodia Motwani expressed excitement about investment by GPC: “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. This investment will enable us to enhance our capabilities, drive zero-emission transportation, and contribute significantly to India’s energy transition goals. As India moves towards its 2030 EV targets, Kinetic Green is well-positioned to be a key driver in this transformation.”

Mr. Ketan Patel, Founder and CEO of GPC, commented: “India’s successful energy transition is critical for the World to meet its Net Zero objectives, and as the country scales into the third largest economy globally in the next 4-5 years, and its middle class rapidly expands, the electrification of transport will be a crucial element of this transition. 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. We are excited to partner with Kinetic Green to help them rapidly scale their business across the country and help drive India’s energy transition forward.”

The advisors to the transaction include Vantage Capital Advisors, Rajani Associates, and Trilegal.

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