Kinetic Green Energy and Power Solutions Ltd has hired consultants to raise up to $40 million in private equity funding by December to fuel growth for the next three to five years, founder and chief executive Sulajja Firodia Motwani said.
The Pune-based electric three-wheeler maker is planning to expand its product portfolio, develop new products along with suppliers, enter niche segments and ramp up capacity at its Ahmednagar plant, Motwani said in an interview.
The company plans to ride on the anticipated demand for electric three-wheelers with commercial applications, primarily orders from state governments and last-mile applications, including delivery for e-commerce and transport for passengers.
“We are in the market for series one funding. We are looking to raise about $30-40 million as we want to capitalize on our first-mover advantage (in the electric vehicles segment). We think that customers are willing to listen," Motwani added.
“We feel we have bootstrapped for a while now. We are piloting with several business-to-business clients and have bagged big orders from state governments. The time has come to scale up aggressively," she said, adding that Kinetic Green now has key fundamentals of being an electric vehicle manufacturer in place.
“We have basics (for a potential EV player) in place such as completely indigenized products, technology access, parts localization and government intent," she said.
“We think it is a reasonable fund-raise; neither too large nor too small. It should see us through the business expansion over the next three years," she said.
Kinetic Green, which reported FY19 revenue at ₹61 crore, is expecting a revenue of about ₹300 crore by the end of FY20. It plans to manufacture about 15,000 electric three-wheelers in FY20. The company has already won an order to supply 7,500 units of electric three-wheelers customized as waste collection vehicles from the Andhra Pradesh state government.
“We have already supplied 2,500 vehicles and another lot of 5,000 units will be delivered by February 2020. The order size is valued at ₹100 crore," Motwani said.