Kinetic Green secures USD 25 million investment from Greater Pacific Capital

Kinetic Green, one of India’s leading electric vehicle manufacturers, has received a boost on the financial front, bagging USD 25 million funding from Greater Pacific Capital (GPC). This is part of a larger and Series A funding round that is expected to gather up to USD 40 million. Kinetic Green was established in 2016 as a first-generation electric vehicle company, and it is being run by Sulajja Firodia Motwani, the third generation of the Firodia family and founder of the Kinetic Group.

Following the above trends, the company has continued to expand from the foundation laid by its predecessors that introduced India to such legendary motorcycles as Kinetic Luna and Kinetic Honda. Indeed, over the past five decades, the Kinetic Group has been hailed for its creativity and relatively cheap products, which have been used to market more than 10 million vehicles.

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However, Kinetic Green has quickly carved out a niche for itself as a contender in the burgeoning market for electric vehicles in India. These consist of electric two-wheelers, three-wheelers, and Golf carts with a consolidated sales figure crossing ₹1000 Crores (₹10 billion). The new investment is the first external equity capital that Kinetic Green has raised and comes at a time when the EV market in India is at the crossroads. As of now, the EV market share in India is approximately 6% but it is projected to expand rapidly as India plans to achieve a 30% EV market by 2030. This growth is being fuelled by the supportive government policies and the increasing use of electric two and three-wheelers.

They shall be utilised for increasing production capabilities at Kinetic Green Ltd Supa manufacturing facility in Maharashtra, for marketing and distribution and for research and development particularly for E-Luna which was recently introduced in the market. Starting its operation in January 2024 in New Delhi, the E-Luna has emerged not only the effective mode of personal transportation but also a valuable addition to the rapidly developing e-commerce and home delivery services.

Additionally, Kinetic Green plans to expand globally, focusing on its premium golf cart range developed in collaboration with Italy’s Lamborghini family. GPC’s investment, which includes common equity shares, convertible preference shares, and debentures, will also see Mr. Nandan Desai, Managing Director and Co-Head of India for GPC, join Kinetic Green’s Board of Directors. The company is actively pursuing an additional USD 15 million in funding to complete its Series A round.

Sulajja Firodia Motwani expressed enthusiasm about the partnership, stating, “The collaboration with Greater Pacific Capital is a milestone for Kinetic Green. It supports our mission to lead the shift to sustainable mobility and contribute to India’s energy transition goals.”

Ketan Patel, Founder and CEO of GPC, emphasised the significance of this investment, noting, “India’s energy transition is critical for global Net Zero targets. As India’s economy grows and its middle class expands, electrification of transport will be essential. Kinetic Green, with its innovative products like the E-Luna, is well-positioned to meet this demand, and we are excited to support their growth.” The transaction was advised by Vantage Capital Advisors, Rajani Associates, and Trilegal.