BGauss, an electric two-wheeler manufacturer, raised a successful funding round and received an investment of Rs 161 crore (approximately $18.6 million) from Bharat Value Fund (BVF). The investment comprises primary and secondary capital that will be used to further add to the business’s growth momentum and take market share further up in India and international arenas.
PC: Manufacturing Today India
Amount Utilized
The money pooled will be used on various key heads:
- Expansion of Operations: BGauss will strengthen its position in the domestic and international markets.
- Capital Expenditure: Infrastructure and production capacity will be invested in.
- Marketing Activities: The company will look to increase brand visibility and customer engagement.
- Research and Development: Improving in-house R&D will help in developing new products
Company Background
BGauss was founded in 2020 by Hemant Kabra. The company is quickly gaining recognition in the electric scooter market. It focuses on the integration of advanced technology into its products, offering features such as:
- AI-enabled technology for improved performance.
- Low maintenance requirements.
- Fast charging capabilities.
- IoT integration for enhanced user experience.
Growth Strategy
BGauss now has 45,000 customers it plans to extend the dealership networks to around 500 from a little above 120 at the moment and eye a goal for establishing more than 1,000 touch points across India. Manufacturing capacity from the present levels of 100,000 per year will rise in keeping up with growing orders.
BGauss launched the RUV 350 scooter in June 2024, which features a 3.5-kilowatt motor, generating a peak torque of 165 Nm, and can attain a top speed of 75 km/h. The company aims to launch two new products this year.
Financial Summary
BGauss has successfully sold more than 40,000 electric scooters, which have helped it earn a market share of 1.5%. The company is also performing well in the export market. BGauss had earlier set an initial target for exporting to Europe and the SAARC region. BGauss had achieved revenues of Rs 177 crore for the fiscal year ended March 2024. Last fiscal year, it had registered Rs 110 crore in revenues. However, it received a loss of Rs 49.65 crore, which was the normal fate of any startup in such a competitive environment.
Conclusion
With increasing competition in the Indian electric two-wheeler market, BGauss’s strategic funding and expansion plans are in a good position for future growth. The company’s focus on innovation and customer service will be important as it strives to become one of the leading players in the electric vehicle sector.
