Multiples Alternate Asset Management and its co-investors are investing up to Rs 1,200 crore ($144.7 million) in Murugappa group company TI Clean Mobility Pvt. Ltd, marking the private equity firm's maiden bet on the fast-growing electric vehicle segment.
The investment is part of TI Clean Mobility’s planned fundraise of Rs 3,000 crore from its parent, Mumbai-listed Tube Investments of India Ltd, and external investors including Multiples and State Bank of India.
TI Clean Mobility, which makes three-wheelers, joins a raft of EV makers in India to raise funds over the past couple of years. These include the EV arm of automaker Tata Motors, two-wheeler maker Ather Energy and ride-hailing firm BluSmart. Multiples PE, meanwhile, joins private equity firm TPG as well as Bp Ventures and International Finance Corporation in investing in EV companies.
Renuka Ramnath-led Multiples, via its third PE fund, will invest Rs 400 crore in TI Clean Mobility in the first phase while SBI will chip in with Rs 200 crore, Tube Investments said in a stock-exchange filing. The PE firm and other investors have a right to invest another Rs 600 crore in the subsequent stage. Tube Investments itself is investing Rs 750 crore. In addition, TI Clean Mobility plans to raise another Rs 1,050 crore by the end of March 2024.
Mumbai-based Multiples Alternate Asset Management has, so far, backed 29 Indian businesses across sectors including financial services, pharmaceuticals and healthcare, consumer and technology. Some of the PE firm’s other investments include Encube, Zenex, PVR, Dream Sports, Quantiphi, Vastu Housing Finance, ACKO, Licious and MoEngage.
Multiples PE had raised $405 million for its first fund in 2011 and about $690 million in its second outing in 2016. It finished fundraising for its third vehicle in 2021 after mobilising $680 million, missing its target. The firm is now raising its fourth fund, and is targeting total commitments of more than $800 million.
TI Clean Mobiliy is currently a wholly owned subsidiary of Tube Investments. It has already unveiled its passenger three-wheeler electric vehicles and plans to ramp up sales over the next few quarters. The company is also designing and developing electric tractors and electric heavy commercial vehicles. Last month, TI Clean Mobility announced the acquisition of an over 30% stake in Cellestial E-Mobility Pvt Ltd, making it a wholly owned subsidiary.
Founded in 1900, Murugappa Group is a business conglomerate which operates 29 businesses including ten listed companies. Some of its prominent companies include Carborundum Universal Ltd., CG Power, Cholamandalam Financial Holdings, Cholamandalam Investment and Finance Company, and Cholamandalam MS General Insurance Company Ltd.