Kinetic Green, a prominent Indian electric vehicle (EV) manufacturer, has announced a significant investment of $25 million from Greater Pacific Capital (GPC), a leading global private equity firm. This funding is part of Kinetic Green’s Series A fundraising initiative, which aims to raise a total of $40 million.
Founded in 2016 as a pioneering EV original equipment manufacturer (OEM), Kinetic Green is led by Sulajja Firodia Motwani, a third-generation member of the Firodia family, the founders of the Kinetic Group. The company has been a major player in India’s automotive sector for over five decades, known for iconic products such as the Kinetic Luna and Kinetic Honda, with over 10 million vehicles sold to date.
Kinetic Green has established itself as a key player in India’s burgeoning EV market, offering a wide range of electric two-wheelers, three-wheelers, and golf carts. To date, the company has sold over 100,000 EVs, generating sales exceeding ₹1000 crores (₹10 billion).
This marks Kinetic Green’s first external equity fundraising effort, coinciding with a critical growth phase in India’s EV market. With EV penetration in India currently at 6%, the market is poised for rapid expansion, targeting 30% penetration by 2030. Government policies favoring the adoption of electric two-wheelers and three-wheelers are expected to drive this growth. Kinetic Green, with its robust product portfolio and extensive R&D, manufacturing, and distribution capabilities, is positioned to lead this transition and plans to sell an additional 100,000 EVs over the next year.
The funds raised will be used to scale production at Kinetic Green’s manufacturing facility in Supa, Maharashtra, enhance marketing and distribution efforts, and invest in research and development for new products. Notably, the investment will support the production and promotion of the recently launched E-Luna, which debuted in January 2024 in New Delhi. The E-Luna has received strong market interest, particularly in smaller towns and cities, serving as both a personal mobility solution and a practical option for the e-commerce and home delivery sectors.
In addition to expanding its domestic market, Kinetic Green plans to focus on global growth, particularly through its premium golf cart range, developed in collaboration with the Lamborghini family of Italy.
GPC’s investment includes a combination of common equity shares, convertible preference shares, and debentures. Nandan Desai, Managing Director and Co-Head of India for GPC, will join Kinetic Green’s Board of Directors as part of the deal. Kinetic Green is also in talks with other potential investors to secure an additional $15 million in funding by the end of 2024.
Sulajja Firodia Motwani, Founder and CEO of Kinetic Green, expressed enthusiasm about the partnership with GPC, stating, “This investment will enable us to enhance our capabilities, drive zero-emission transportation, and contribute significantly to India’s energy transition goals.”
Ketan Patel, Founder and CEO of GPC, highlighted the importance of India’s energy transition, noting that Kinetic Green is well-positioned to provide innovative and aspirational electric vehicles to India’s growing population.
The transaction was advised by Vantage Capital Advisors, Rajani Associates, and Trilegal.
