Kinetic Green Raises US$25 Million From Greater Pacific Capital

·         Greater Pacific Capital to be Lead Investor in the proposed US $ 40 Mn Series A fund raise

·         Kinetic Green to deploy the funds for aggressive growth in its Electric 2W and 3W business

Kinetic Green, a leading Indian manufacturer of Electric Vehicles (“EV”), announced that it has secured a US$25 million investment from Greater Pacific Capital (“GPC”), a leading global private equity firm, as part of an overall targeted Series A fundraise of up to US$40 million.

Kinetic Green entered the EV sector in 2016, as a pioneering EV OEM. The company is led by Sulajja Firodia Motwani, a third-generation member of the Firodia family, the founders of the Kinetic Group. Kinetic has been a leading manufacturer and innovator in India’s automotive sector over the past 50 years, and is well known for iconic products including the Kinetic Luna and Kinetic Honda, selling over 10 million vehicles to date. The group is highly regarded for developing and deploying advanced automotive technologies at affordable prices to drive mobility for the masses, with a focus on designing, developing and manufacturing products in India.

Kinetic Green has emerged as a leading player in India’s rapidly-growing EV market, offering a diverse range of products including electric two-wheelers, electric three-wheelers and golf carts. To date, the company has sold over 100,000 EVs, generating cumulative sales over ?1000 Crores (?10 billion).

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. EV Penetration in India has reached 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 utilize 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. Kinetic Green’s flagship E-Luna was launched in January 2024 in New Delhi in the presence of the Hon. Nitin Gadkari, Union Minister of Road Transport and Highways, and is a new and distinct offering in India’s EV market. Since its launch, the E-Luna has received a tremendous market response in large and small towns of India, as a personal mobility solution and as a “business partner”, well designed for the fast growing e- commerce and home delivery segment.

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. 

GPC’s investment in Kinetic Green is through a combination of instruments including common equity shares, convertible preference shares and debentures. As part of the investment, Mr. Nandan Desai, Managing Director and Co-Head of India for GPC, will join Kinetic Green’s Board of Directors. The company is in active discussions with other potential investors to secure an additional US$15 million of funding which it aims to complete during 2024.

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. 

About Greater Pacific Capital

GPC is a leading international private equity investor, focused on delivering a strong development impact alongside financial returns, with measurable impact on the UN’s Sustainable Development Goals. The firm was founded in 2005 and has invested and mobilized over US$1 billion of capital in high-growth companies in core sectors of the Indian economy including financial services, technology, education and healthcare. GPC’s recent investments include Enzen Global Solutions Pvt. Ltd., a leading global provider of energy efficiency solutions to utilities; Muthoot Microfin Ltd., one of India’s largest microfinance institutions; NxtWave Disruptive Technologies Ltd., a rapidly-growing training and skilling platform for careers in technology.

For more information on GPC, please visit: http://greaterpacificcapital.com

About Kinetic Green:

Kinetic Green, the latest venture from Kinetic and Firodia Group, today is a leading player in India’s Electric Vehicle sector, offering a wide range of electric vehicles, including electric three-wheelers, both cargo and passenger, and recently introduced electric two- wheelers under the Kinetic Green brand. For electric golf-carts and buggies, the company has formed a Joint Venture with the world’s leading luxury brand, Tonino Lamborghini of Italy. 

Spearheaded by third generation scion of the Firodia family, Ms. Sulajja Firodia Motwani, the company has successfully designed, manufactured, and cumulatively sold over 100,000 electric vehicles and achieved sales of around ?1000 Crores. 

The mission of Kinetic Green is to provide green mobility to the masses. Kinetic Green has had several firsts to its name, including being the first company to develop ARAI approved electric three-wheelers and the first to offer Lithium-ion battery technology in their electric three-wheelers in India.