Kolkata-based electric-cycle maker Motovolt Mobility Pvt. Ltd on Thursday said it has raised Rs 16 crore ($1.96 million) in a pre-Series A round.
Investors such as listed PPAP Automotive, Vikrampati Singhania of JK Family; Ankur Agarwal of Crystal Crop; Vikas Bagaria of D2C company Pee Safe; Dubai-based Transworld Group’s family office Wami Capital along with other family offices participated in the round.
The company plans to use the capital to bring new products, marketing initiatives and grow its presence through more retail points pan India, it said in a release.
“The pre-series A funding will enable us to move to the next stage in terms of expanding not just the product portfolio but also our presence across India. In-line with the targets set by the government, Motovolt aims to become the go-to-choice for affordable electric vehicle commute going forward,” said Tushar Choudhary, founder and chief executive, Motovolt.
Motovolt, which makes smart e-cycles, was founded in 201 by Choudhary, who previously co-founded the now-listed Himadri Speciality Chemicals Ltd. It operates electric bikes and two-wheelers that run under 25 kmph speed and consume less than 250W rated power. The company has over 35 retail stores across India.
Ahlawat & Associates acted as the financial adviser for the transaction.
“Motovolt is one of the few Indian brands that is focusing on building domestic manufacturing capabilities and creating solutions ideal for the Indian market also keeping in mind the rural demand and their requirements. Products such as their e-cycles have value for millions of users in India, and abroad,” Ramesh Ramakrishnan, Wami Capital, said.
This is the company’s first funding round. Promoters had bootstrapped the venture up until now, with a capital infusion of Rs 24.9 crore. It is now looking to grow its annual sales from 4,000 units to 60,000 units in the next 12 months and increase its distribution presence to more than 350 stores.
As a part of the deal, agro-chemical Crystal Crop Protection will also help Motovolt in increasing product visibility through its network of over 35,000 retail points in the country.
“Tushar and his team have demonstrated the economics of mass mobility solutions. We believe mass mobility has potential to impact the bottom of the pyramid and help a wide section of society. The market is growing and we are confident that Motovolt will continue to bring their mission to market,” said Singhania.