Kinetic Green secures $25 million investment from Greater Pacific Capital

Kinetic Green, an Indian electric vehicle (EV) manufacturer, has secured a $25 million investment from Greater Pacific Capital (GPC), a global private equity firm. This funding is part of a larger $40 million Series A round, marking Kinetic Green's first external equity raise. The funds will be used to accelerate the growth of Kinetic Green's electric two- and three-wheeler business.

The investment will be used to scale production at Kinetic Green's manufacturing facility in Supa, Maharashtra, and to enhance marketing, distribution, and R&D efforts. This includes the promotion of the recently launched E-Luna, which debuted in January 2024. Additionally, Kinetic Green plans to expand globally, particularly through the launch of its premium golf cart range, developed in collaboration with the Lamborghini family of Italy.

GPC's investment includes a mix of common equity shares, convertible preference shares, and debentures. Nandan Desai, managing director and co-head of India for GPC, will join Kinetic Green's board of directors. The company is also in talks with other investors to secure an additional $15 million by the end of 2024.

Speaking on this, Kinetic Green's founder and CEO, Sulajja Firodia Motwani, stated, "The partnership with Greater Pacific Capital marks a pivotal moment for Kinetic Green. This investment will enable us to enhance our capabilities, drive zero-emission transportation, and contribute significantly to India’s energy transition goals."

Ketan Patel, founder and CEO of GPC, stated, "India's successful energy transition is critical for the world to meet its Net Zero objectives. Kinetic Green, with products like the E-Luna, is well-positioned to provide innovative electric vehicles to India's large, young, and growing population. We are excited to help Kinetic Green rapidly scale their business and drive India’s energy transition forward."

The Indian EV penetration is reaching approximately 6 per cent. The rapid adoption of electric two- and three-wheelers is expected to drive growth, with a targeted 30 per cent penetration by 2030, supported by favourable government policies. Kinetic Green is aiming to lead this transition. The company is expanding its dealership network and aims to sell over 100,000 EVs in the coming year.

Kinetic Green, led by Sulajja Firodia Motwani, a third-generation member of the Firodia family who founded the Kinetic Group. Known for products like the Kinetic Luna and Kinetic Honda, the group has been a player in India's automotive sector for over 50 years, selling more than 10 million vehicles. Kinetic Green offers a range of products, including electric two-wheelers, three-wheelers, and golf carts. The company has sold over 100,000 EVs to date, generating cumulative sales exceeding Rs 1,000 crore.

Kinetic Green's advisors for the transaction included Vantage Capital Advisors, Rajani Associates, and Trilegal.