2 hrs ago
Ultraviolette Seeks ₹373 Crore to Expand Electric-Two-Wheeler Manufacturing
Ultraviolette makes electric motorcycles and scooters.
It is planning to raise about ₹373 crore from investors.
The company will use its larger investment program to build and expand factories.
Its new BIGGA factory could initially make 2.5 lakh vehicles each year.
The factory may eventually make up to 5 lakh vehicles annually.
Ultraviolette wants to sell more products to a wider group of customers.
It also plans to sell more vehicles in other countries.
However, its August sales in India were lower than in July.
Ultraviolette Automotive plans to raise ₹373.04 crore in its ongoing Series E funding round.
Yali Capital’s Yali Deeptech Fund I and TDK Ventures have contributed ₹249.2 crore, with angel investors also participating.
The company plans to invest more than ₹1,000 crore over five years, including approximately ₹800 crore in its BIGGA factory.
BIGGA will initially add annual production capacity of up to 2.5 lakh vehicles, scalable to 5 lakh.
Ultraviolette reported 583 domestic electric-two-wheeler registrations in August, down from 702 in July, representing a 0.3% market share.
- Who
- Ultraviolette Automotive, with funding from Yali Capital, TDK Ventures and other investors.
- What
- The electric-two-wheeler maker is raising ₹373.04 crore and expanding its manufacturing capacity.
- Where
- The new BIGGA factory and the existing plant are associated with Bengaluru, while the company is also targeting international markets.
- When
- The additional fundraising is part of an ongoing Series E round; August registration figures were cited for the latest reported month.
- Why
- To increase production, launch products for larger customer segments and support international expansion.
Expansion Outlook
Market Caution
Demand and scale
Expansion Outlook
Ultraviolette’s founders say demand for its current portfolio exceeds 10,000 units monthly and that upcoming products have received tens of thousands of bookings.
Market Caution
The company recorded 583 electric-two-wheeler registrations in August, down 17% from July, and held a 0.3% domestic market share.
Product strategy
Expansion Outlook
The company says it is broadening its customer reach with products such as the Shockwave and Tesseract while retaining its focus on technology, safety, performance and range.
Market Caution
The available registration figures show that Ultraviolette remains a small participant in the domestic electric-two-wheeler market.
Manufacturing expansion
Expansion Outlook
Ultraviolette expects BIGGA to provide industrial scale, with an initial capacity of 2.5 lakh vehicles and eventual capacity of 5 lakh.
Market Caution
The company says capacity will be commissioned progressively in line with demand, indicating that the planned capacity is not expected to be used immediately.
Key facts
- Planned fundraising
- ₹373.04 crore in the ongoing Series E round
- Funding identified
- ₹249.2 crore from Yali Capital’s Yali Deeptech Fund I and TDK Ventures
- Five-year manufacturing investment
- More than ₹1,000 crore
- BIGGA initial capacity
- Up to 2.5 lakh vehicles annually
- BIGGA potential capacity
- Up to 5 lakh vehicles annually
- Existing Bengaluru capacity
- Around 30,000 vehicles annually, being expanded to 50,000–60,000
- August registrations
- 583 electric two-wheelers, compared with 702 in July
Quotes
Narayan Subramaniam and Niraj Rajmohan
Ultraviolette’s cofounders discussing the company’s product and technology strategy.
“The investments are part of a currently ongoing fundraise; we have nothing further to add at the moment”
inc42.com
“Ultraviolette was conceived from the outset as an electric-vehicle platform company”
inc42.com
Sources
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