Electric 2-wheeler startup Ultraviolette Automotive Pvt. Ltd has raised funding from Amsterdam-based Exor Capital, the company announced on Thursday.
The company did not disclose financial details of the funding round but regulatory filings obtained by VCCircle show Ultraviolette raised Rs 79 crore (around $10 million) by allotting 2,192 Series D compulsory convertible preference shares and 10 equity shares to Exor Co-Invest Fund I ILP. Ultraviolette will be valued at around $300 million post allotment.
Exor Capital’s parent Exor has controlling stakes in companies like Ferrari, CNH Industrial, Iveco Group, The Economist Group, Via and the football team Juventus. The firm is also the largest shareholder in carmaker Stellantis.
The investment is part of an ongoing Series D round of funding, with Exor Capital as the lead investor. With this investment, the fund now joins the cap table along with TVS Motor, Zoho Corporation, GoFrugal Technologies, and Speciale Invest.
“With this investment, we now have a diversified group of Indian and international institutional investors backing us in our journey and vision of shaping a new era of mobility not just in India but in global markets as well,” Narayan Subramaniam, co-founder and chief executive officer, Ultraviolette said.
The Bengaluru-based EV maker is currently gearing up to launch the F77 in India, the new investment from Exor will be used towards expanding its presence across the country, ramping up sales and subsequent expansion in international markets including trials, certifications and sales.
The company claims to receive over 65,000 pre-order interests of which India, the USA, and Europe represent a significant part of these numbers. Ultraviolette will be rolling out with public test rides beginning September 2022, it said.
Niraj Rajmohan, co-founder and chief technology officer, Ultraviolette said, “We see perfect synergies and uniquely exciting opportunities of working together with Exor. We believe that their expertise in working with brands like Ferrari and Stellantis and building great companies will be integral in carving a distinct identity for Ultraviolette and the F77 across the world.”
The F77 is a high-performance electric motorcycle, with an acceleration of 0-60 in 2.9 seconds, a top speed of 140 kmph, and a range of 150 km on a single charge.
Ultraviolette raised Rs 30 crore ($4.1 million) from TVS Motor Company as part of its Series B funding round. TVS Motor had first acquired a 14.78% stake in the electric bike maker for Rs 5 crore in December 2017. In August 2018, the two-wheeler maker infused Rs 6 crore more into Ultraviolette to raise its stake to 25.76%.
The investment was facilitated by Rothschild & Co as the banking partners. Anagram Partners and Nishith Desai Associates acted as counsel to Ultraviolette and Exor Capital.
Venture capital and private equity companies have invested $666 million across 24 deals in the Indian electric mobility industry this year so far, a joint report titled ‘Electrifying Indian Mobility’ by IVCA-EY-Induslaw recently said.
According to the report, the Indian electric vehicle (EV) industry saw 8x year-on-year growth in VC/PE investments, to $1.7 billion in 2021, from $181 million in 2020. Last year, EV registrations amounted to 330,000 units, a jump of nearly 3x from 2020. Electric vehicle sales in the first quarter of 2022 have been at almost 110,000 units. As of CY21, the report states, electric vehicles accounted for 1.1% of total vehicle sales and are now expected to account for 39% of total automotive sales by CY27, growing at a 68% CAGR over the next 5 years.
Last month, Mint reported that private equity majors TPG Capital and KKR & Co. are in talks with TVS Motor Co. Ltd to invest at least $300 million to fund its electric vehicle (EV) business expansion plan.
Meanwhile, VCCircle had also reported last month that Bengaluru-based electric 2-wheeler maker Ather Energy has initiated discussions with investment banks, exploring the possibilities of going public in the near future.