Kinetic Green, the electric vehicle manufacturing wing of the Kinetic Group, has closed an investment of Rs 168 crore, or about $20 million, from Greater Pacific Capital. This comes as an equity and debt mix financing round, and the first for the Pune-based firm in the calendar year 2024.
PC: Moneycontrol
According to regulatory filings with RoC, Kinetic Green’s board has approved a special resolution for the issuance of 10,100 non-convertible debentures, mobilizing Rs 101 crore from Greater Pacific Capital. The company also managed to raise Rs 67 crore in Series A funding by issuing 7,04,612 preference shares to the London-based investor.
The proceeds will be utilized toward debt repayment, capital expenditure, and sales and marketing initiatives. This strategic move on the finance front is likely to further strengthen Kinetic Green’s operational capabilities and market presence.
In accordance with the post-allotment valuation, Kinetic Green is pegged at close to Rs. 1,467 crore ($176 million). Greater Pacific Capital will own 4.58 percent of the company, reflecting a strong market position and growth potential in the EV sector.
Kinetic Green is known for its electric three-wheelers and two-wheelers. The most recent high-profile tieup is that with the luxury brand Tonino Lamborghini for making electric golf carts and buggies. In February this year, the topmost functionary of Kinetic Green, Sullaja Firodia Motwani, said, “The company would invest ₹100 crore to roll out e-Luna, the electric avatar of the iconic Luna moped.”.
The company has set rather ambitious targets for its growth. In FY2022-23, the EVs sold by Kinetic Green reached 50,000. It targets to double sales to 100,000 units with a revenue of ₹1,000 crore in FY25. Further, Kinetic Green is eying a market share of 12-15 per cent in EV two-wheelers and three-wheelers.
A data intelligence platform for startups, TheKredible, said revenues of Kinetic Green surged 50% to Rs 303 crore in FY23, even as the company remained a minimal loss of Rs 7 crore. Though the company is yet to file its annual results for FY24, the recent fund raise and strategic initiatives have set it on a positive trajectory, indicates a data intelligence platform for startups, TheKredible.
The successful fundraise from Greater Pacific Capital underlines rising investor confidence in the EV sector and, more importantly, Kinetic Green’s potential to drive innovation and growth. This investment shall further enhance the competitiveness of Kinetic Green in the marketplace and help accomplish its vision of providing people with sustainable, eco-friendly transportation solutions.
Now, the latest round of funding to Kinetic Green has been some sort of a phenomenal milestone. It will very easily boost its product offerings and market presence, furthering the cause of electric vehicles in India.
