In a significant move towards bolstering the electric vehicle (EV) ecosystem, Mahanagar Gas Limited (MGL) has finalized a binding Share Subscription Agreement (SSA) with 3ev Industries Pvt. Ltd (3ev), marking a substantial Rs. 96 crore investment. The agreement, signed at MGL’s offices in Mumbai, represents the entire Series A equity investment and is anticipated to be implemented in phases, subject to standard closing provisions. The initial tranche of investment is slated for completion by the end of this month.
Established in 2019 in Bangalore, Karnataka, 3ev specializes in manufacturing L5 category three-wheel cargo and passenger vehicles, along with ICE-to-EV converted electric vehicles. The company’s premium EVs cater to the transportation needs of prominent e-commerce, retail, and last-mile logistics companies. The infusion of funds from MGL is earmarked for enhancing production capacity to meet burgeoning customer demand, supporting research and development initiatives focused on electronics efficiency, and expanding aftermarket services, including Battery-as-a-Service (BaaS).
Mr. Peter Voelkner, Managing Director of 3ev, expressed profound gratitude for MGL’s investment, citing it as a testament to their business acumen, management prowess, and future prospects. He highlighted the synergies between MGL and 3ev, particularly in the realm of EV adoption and the burgeoning battery ecosystem, underscored by 3ev’s proprietary BaaS model. Mr. Voelkner emphasized 3ev’s commitment to offering competitive total cost of ownership (TCO) solutions and envisioned accelerated penetration and commercialization of EVs in India and beyond, fueled by MGL’s support.
Furthermore, Mr. Voelkner reiterated 3ev’s successful proof of concept for its heavy-duty cargo, passenger, and ICE-to-EV converted vehicles, showcasing their efficacy in meeting the transportation requirements of various industries. The investment from MGL is poised to facilitate rapid scaling of production to address a significant backlog of customer demand and to expand BaaS services into new territories.
Speaking on the occasion, Mr. Ashu Shinghal, Managing Director of MGL, underscored the company’s commitment to environmental sustainability and the transition to greener transportation solutions. He emphasized the investment’s role in fortifying the EV ecosystem, particularly in the last-mile logistics segment, aimed at phasing out diesel vehicles and reducing carbon emissions. Mr. Shinghal also highlighted MGL’s strategic positioning in emerging sectors, reiterating the importance of participating in the EV value chain to support the sector’s nascent phase.
The investment from MGL not only signifies a significant financial infusion for 3ev but also underscores a strategic collaboration aimed at driving the adoption of EVs and fostering sustainability in the transportation sector.
