Multiples leads $146m for Indian EV maker

The firm is investing via its third private equity fund, which closed on USD 685m in 2021. LPs include India's National Investment & Infrastructure Fund (NIIF), a state investor recently active in the EV space by joining a USD 128m round for motorbike maker Ather Energy. Multiples’ fourth fund was launched last year with a target of USD 1bn.

State Bank of India is also participating in the round, which is ongoing. TI Clean is reportedly looking to separately raise an additional INR 10.5bn by March 2024. For its part, Multiples has indicated that it could bring in further co-investment.

Speaking at a recent EV event hosted by the Indian Venture & Alternate Capital Association, Paddy Sinha, a former managing partner of Tata Opportunities Fund who led NIIF’s investment in Ather, described the industry as still largely VC territory in India. He added, however, that the two-wheeler and three-wheeler segments had become material opportunities.

TI Clean focuses on three-wheelers, serving both the passenger and cargo segments. This includes tractors and heavy commercial vehicles. Renuka Ramnath, founder and CEO of Multiples, said in a social media post the plan was to build the company into India’s leading electric commercial vehicle original equipment manufacturer (OEM).

Most of the traction in India’s broader EV opportunity is in the unorganised two-wheeler and three-wheeler market. These vehicles are basic, with fewer electronic engineering issues, allowing last-mile logistics and transportation businesses to convert them more easily. Importantly, unlike cars, they can be plugged into normal power outlets.

The emergence of local OEMs in India’s two-wheeler and three-wheeler market is a significant turning point for the industry. The first generation of EVs in the country were of Chinese design and seen as unsuited to local conditions and expectations. Ruggedness is a key consideration given the varied climates and landscapes, as well as a cultural tendency to overload vehicles.

This is not the first time Multiples has invested in a Murugappa affiliate. In late 2011, the private equity firm committed about USD 20m to commercial vehicle financing property loans provider Cholamandalam Finance. After scaling up used vehicle financing among other business lines, it exited in 2015.

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• Topics
• South Asia
• Expansion
• Industrials
• Technology
• Cleantech
• India
• Multiples Alternative Asset Management
• automobiles
• Electric Vehicles
• manufacturing