Taiwanese two-wheeler maker Kwang Yang Motor Co. Ltd, or Kymco, is investing in Gurugram-based electric vehicle startup Twenty Two Motors Pvt. Ltd.
The Economic Times reported, citing people aware of the development it didn’t name, that Kymco will pick up a stake of over 25% in Twenty Two Motors and that it will invest $65 million (Rs 480 crore) in the Indian company.
Twenty Two Motors will use the proceeds for setting up a new plant and for localisation of batteries over the next three years, according to the report.
When contacted by VCCircle, Twenty Two Motors co-founder Vijay Chandrawat declined to comment on the investment. Kymco didn’t immediately respond to an email request for comments.
Separately, the two companies announced a partnership that will allow them to share knowledge, technology and expertise to create premium electric mobility architectures in India, according to a press statement. The companies will launch two wheelers under the Twenty Two Motors Kymco brand from early next year.
Parveen Kharb, co-founder and chief executive of Twenty Two Motors, said in the statement the tie-up will strengthen their expertise and enable them to build innovative, powerful and smart electric vehicles.
Twenty Two Motors was founded in August 2016 by Chandrawat and Kharb. In April 2017, it had raised $1.6 million (Rs 10.2 crore then) in a pre-Series A round led by Ishwar Singh, chief executive of Haryana Group of Industries.
Kymco was founded in 1964. It originally started out with technology transfer from Japan’s Honda. Its current product range includes scooters, motorcycles and mobility scooters.
Electric vehicle startups
A number of other startups have also forayed into the electric vehicle segment and raised funding from investors.
In September, Mumbai-based electric vehicle startup Strom Motors, run by E14 Technologies Pvt. Ltd, raised funding from the Indian Angel Network.
In August, engineering company Greaves Cotton agreed to acquire a majority stake in electric two-wheeler maker Ampere Vehicles.
In July, Hero MotoCorp decided to invest Rs 130 crore ($19 million) more in Ather Energy. The two-wheeler maker had first invested Rs 205 crore in Ather Energy in 2016.