With this investment, GEF Capital has acquired a minority stake in the startup which provides powertrain solutions for electric vehicles
Electra EV will use the fresh funds to expand its product offerings for three-wheelers, four-wheelers, agriculture and other allied segments
The startup, promoted by Ratan Tata, plans to further enhance its design, testing, and prototyping, and expand production capabilities to meet the rising demand
Electra EV, a startup owned and promoted by veteran industrialist Ratan Tata, has raised about $25 Mn from GEF Capital’s South Asia Growth Fund II.
With this investment, GEF Capital has acquired a minority stake in the startup which provides powertrain solutions for electric vehicles (EVs).
Electra will use the fresh funds to expand its product offerings in three-wheelers, four-wheelers, agriculture and other allied segments to serve original equipment manufacturers (OEMs) and Tier-1 automotive suppliers.
Founded in 2017 by Tata, Electra builds, integrates and supplies EV powertrains systems including battery packs, e-traction systems and integrated electronics, among others, for passenger and commercial EVs.
The startup claims to provide solutions and assistance to automotive OEMs right from conceptualisation to prototyping to after-sales support across the country.
“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. We are excited to partner with Electra EV in its next phase of growth and development,” said Sridhar Narayan, managing partner at GEF Capital.
Electra builds EV powertrain systems for various use cases and then supplies them to OEMs for integration in electric vehicles. The startup claims to have designed and manufactured powertrains for Tata Motors’ Tata Xpres-T and Tata Ace EV.
Electra plans to further enhance its design, testing, and prototyping, and expand production capabilities to meet the rising demand.
“This fundraise provides us with both financial wherewithal and a like-minded partner like GEF Capital to help us continuously innovate, acquire new customers in India and overseas, thereby achieving our vision of transforming the global movement towards cleaner fuels,” said Samir Yajnik, executive director of Electra.
The development comes at a time when the demand for EVs is on the rise in the country. While the central and state governments have come out with various schemes like FAME-I, FAME-II, and PLI scheme to increase adoption of EVs in the country, a number of startups like Ola Electric and Ather Energy have established themselves as key players in the two-wheeler EV manufacturing space.
Besides, a number of startups like Exponent Energy, ElectricPe and CHARGE+ZONE are setting up EV charging infrastructure in the country.
Consequently, the sales of EVs have been rising in the country. The number of two-wheeler EV registrations in the country grew for the fifth consecutive month in October, crossing the 75,000 mark.
Overall, EV registrations, across segments, rose nearly 23% month-on-month to 1.14 Lakh units.