GEF Capital backs India EV components supplier Electra EV
GEF Capital Partners, a spinout from Global Environment Fund, has invested USD 25m in Electra EV, an India-based electric vehicle (EV) components manufacturer controlled by Ratan Tata.
The private equity firm participated through its South Asia Growth Fund II, a USD 200m vehicle that backs small and medium-sized enterprises (SMEs) in India and Bangladesh involved in sustainable agriculture, renewable energy, and efficient use of water. The fund achieved a final close in March.
Founded in 2017, Electra EV supplies EV powertrain systems, including battery packs, e-traction systems, and integrated electronics, for passenger and commercial EVs. Its powertrain solutions feature in vehicles released by Tata Motors.
The company said in a statement that the new funding would be used to expand its product offerings across three-wheelers and four-wheelers, as well as in agricultural applications and other EV segments. The goal is to serve domestic and international original equipment manufacturers (OEMs) and tier-one automotive suppliers.
Electra EV will also upgrade its design, testing, and prototyping capabilities, and expand production capacity to support rising EV production volumes. EV sales in India reached 428,213 units for the 12 months ended March 2022, up from 134,463 units a year earlier. Deloitte projects sales to hit 1.64m units in 2015 and 15.3m units by 2030.
"The EV ecosystem is currently at a pivotal stage, and we believe Electra EV's differentiated proposition of high-end performance, safety, and affordability provides a strong growth opportunity,” said Sridhar Narayan, a managing partner at GEF Capital.
Private equity investors are also investing heavily in EV manufacturers. Euler Motors recently closed a USD 60m Series C round at a valuation of USD 200m. This followed Everstone Group’s acquisition of a majority stake in Lithium Urban Technologies for USD 50m, and EV ride-hailing and charging player BluSmart securing a Series A of the same size.
Last year, TPG Rise Climate and ADQ committed INR 75bn (USD 994m) to the EV unit of Tata Motors.
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