Altigreen Plans To Raise Rs 1,000 Crore In The Next Year

A file photo of Altigreen neEV

Altigreen, an electric commercial vehicle manufacturer that is backed by Reliance Industries, plans to raise Rs 1,000 crore in the next year. This will allow it to develop new models and expand its operations in domestic as well as international markets, according to Amitabh Saran, company founder and CEO.

Altigreen had earlier raised Rs 300 crore from several entities, including Reliance. The company is currently developing electric vehicles for last-mile transportation.

Saran, in an interview, stated that the company intends to have a national presence and sales outlets located throughout the country, including in Tier II and Tier III cities.

He added that the company plans to also enter its first international markets next year.

“Currently, there are not many players in the electric space with a national presence. There are very few niche players that have a presence in certain regions,” Saran stated, referring to the company’s plans for a pan-Indian presence.

He pointed out that the company’s strong R&D orientations have already solved critical functions such as supply chain and production capacities and is now looking for ways to expand its sales infrastructure.

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Altigreen already has a production capacity to produce around 4,500 units per month. They now plan to consolidate their sales infrastructure with plans to have 40 dealers in place throughout the country by the end of the current fiscal, Saran stated.

It recently opened its third dealership in India, in Delhi.

Saran answered a question about how the company will fund its future growth. “If we get into four-wheeler (commercial vehicles), then the need is much greater, but probably to Rs 800 crore-1,000 crore.”

He noted that the capital raising timeframe would likely be sometime next year. It would consist of both equity and debt.

Saran stated that the capital would be used to finance the company’s next stage of growth, where it plans on entering international markets and adding more product lines.

“In 2023, we plan to be the first country outside of India,” he said. We created the electric cargo vehicle neEV knowing that it would be sold in India and other emerging markets such as South Asia, Africa, and South America.” He said that we are already receiving inquiries from these areas.

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Saran stated that the company might consider setting up production units, ink JV agreements, as well as forging partnerships in international markets.

He stressed the importance of R&D and noted that the company spent many years perfecting its technology.

26 patents worldwide in electric technology are held by the company.

“Using our experience, we are developing a passenger version for the neEV in 2023 first quarter. We strongly believe that the three wheels have not been fully exploited in the country. Three-wheeler and three-wheels are two different things. Three wheels can be used in so many different ways,” Saran stated.

He pointed out that favourable government policies had helped to increase the number of electric vehicles, particularly in the commercial sector.

The company raised Rs 300 crore earlier this year in a financing round. Sixth Sense Ventures led the Series A investment, as well as Reliance New Energy and Accurant International, Xponentia Capital, USA, and Momentum Venture Capital in Singapore.

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