Kinetic Green has raised USD 25 million from Greater Pacific Capital as part of an overall Series A funding round of up to USD 40 million.
GPC invested in Kinetic Green using a variety of instruments, including ordinary equity shares, convertible preference shares, and debentures. As part of the investment, Nandan Desai, Managing Director and Co-Head of GPC India, will join Kinetic Green’s Board of Directors. The firm is in ongoing conversations with other possible investors to raise an additional USD 15 million in investment, which it hopes to complete by 2024.
This is the first external equity fundraise by Kinetic Green, and it comes at a time when the Indian EV market is at an inflection point, with the EV Penetration in India reaching approximately 6%, with electric two-wheelers and three-wheelers seeing the fastest adoption and becoming the primary growth drivers of the sector. Electric vehicle sales in India are expected to grow rapidly with a targeted 30% EV penetration by 2030, driven by favourable Government policies for increased adoption of electric two-wheelers and three-wheelers. Kinetic Green is an established EV maker with a proven EV product portfolio, R&D, manufacturing and distribution capabilities in both of these segments, and is well-poised to lead this transition and aims to grow rapidly over the next few years.
The company is in the process of expanding its dealership network reach and is aiming to sell over 100,000 EVs over the coming year.
Kinetic Green intends to utilise the funds towards scaling up production at its manufacturing facility in Supa (Maharashtra), marketing and distribution of its current products including the recently-launched E-Luna, and towards research and development of new products.
In addition to scaling up its sales of electric two- and three-wheelers in India, Kinetic Green will also focus on global expansion, in particular through the launch of its premium golf cart range which are designed, developed and manufactured through an exclusive joint venture with the Lamborghini family of Italy.
Vantage Capital Advisors, Rajani Associates, and Trilegal were advisors to the transaction.
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