Kinetic Green, a prominent Indian manufacturer of electric vehicles (EVs), has announced securing a $25 million investment from Greater Pacific Capital (GPC), a leading global private equity firm. This investment is part of Kinetic Green’s targeted Series A fundraise of up to $40 million.
Since its entry into the EV sector in 2016, Kinetic Green, led by Sulajja Firodia Motwani—a third-generation member of the Firodia family—has become a pioneering EV original equipment manufacturer (OEM). The Firodia family, founders of the Kinetic Group, has been a leading innovator in India’s automotive sector for over 50 years, known for iconic products like the Kinetic Luna and Kinetic Honda, with over 10 million vehicles sold to date. Kinetic Green has emerged as a key player in India’s rapidly growing EV market, offering a diverse range of products, including electric two-wheelers, three-wheelers, and golf carts, with over 100,000 EVs sold, generating cumulative sales exceeding ₹1000 Crores (₹10 billion).
This investment marks Kinetic Green’s first external equity fundraise, coinciding with a pivotal moment in the Indian EV market, which currently has approximately 6% EV penetration. Electric two-wheelers and three-wheelers are driving this growth, and the Indian government aims to achieve 30% EV penetration by 2030. Kinetic Green is well-positioned to lead this transition with its proven EV product portfolio, R&D, manufacturing, and distribution capabilities. The company plans to expand its dealership network and aims to sell over 100,000 EVs in the coming year.
The funds will be utilized to scale up production at Kinetic Green’s manufacturing facility in Supa, Maharashtra, and to market and distribute current products, including the recently launched E-Luna. The E-Luna, launched in January 2024 in New Delhi, has received tremendous market response as a personal mobility solution and a business partner, especially for the growing e-commerce and home delivery segment.
In addition to expanding its sales of electric two- and three-wheelers in India, Kinetic Green will also focus on global expansion through the launch of its premium golf cart range, developed through an exclusive joint venture with the Lamborghini family of Italy.
GPC’s investment in Kinetic Green includes a combination of common equity shares, convertible preference shares, and debentures. As part of the investment, Nandan Desai, Managing Director and Co-Head of India for GPC, will join Kinetic Green’s Board of Directors. The company is actively discussing with other potential investors to secure an additional $15 million in funding, aiming to complete this during 2024.
Sulajja Firodia Motwani, Founder and CEO of Kinetic Green, expressed excitement about the partnership with GPC, “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.”
Ketan Patel, Founder and CEO of GPC, commented, “India’s successful energy transition is critical for the world to meet its Net Zero objectives. The Kinetic Group has been at the forefront of innovation in India’s automotive sector for the last 50 years and, with 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 drive India’s energy transition forward.”
Advisors to the transaction include Vantage Capital Advisors, Rajani Associates, and Trilegal.
