TPG Rise Climate invests $176m in Tata Motors
TPG Rise Climate, a dedicated climate fund under TPG’s global impact platform, has invested about INR 14.7bn (USD 176m) in an engineering and digital services division of India’s Tata Motors.
The growth-stage vehicle closed on USD 7.3bn in April last year, exceeding the hard cap of USD 7bn. Previous investments include an INR 75bn commitment to the electric vehicle unit of Tata Motors that brought in ADQ of Abu Dhabi, as a co-investor.
The latest transaction delivers TPG Rise a 9% stake in Tata Technologies, which in addition to automotive, provides manufacturing and engineering services to the aerospace, transportation and construction heavy machinery industries. The Ratan Tata Endowment Foundation came in as a supporting investor, taking a 0.9% stake for INR 1.47bn, according to a filing.
Tata Technologies was incorporated under the name Core Software Systems in 1994 and rebranded in 2021. It is active across IT consulting, computer-aided design, and enterprise resource planning software, among other related areas. It has six offices in India and one in Japan.
Recent activity includes establishing a partnership with fellow Tata Motors subsidiary Jaguar Land Rover to speed up go-to-market timeframes through cloud technologies. Revenue increased 65% to INR 17.3bn during the 12 months ending March 2022, while net profit doubled to INR 2.2bn.
TPG Rise has about USD 18bn in assets under management. Its climate fund – which invests across energy, mobility, carbon, and sustainable molecules – is backed by large institutional investors as well as 28 global corporations. The platform also encompasses at least two generalist impact funds and a healthcare investment programme called Evercare.
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