[Update] Sixth Sense Ventures, Reliance Invest INR 300 Cr In EV Maker Altigreen

Update | Februray 11, 2022, 11:40 AM

Bengaluru-based Altigreen has raised INR 300 Cr ($40 Mn) in its Series A round led by Sixth Sense Ventures, the EV maker said in a statement. Reliance’s energy arm New Energy, Xponentia Capital, Accurant International and Momentum Venture Capital also participated in the round. Altigreen intends to use the funds to ramp up its production capabilities, accelerate R&D and develop a pan-India network.

Our original story follows –

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Original Story | February 10, 2022, 01:02 PM

Reliance Industries’s energy arm Reliance New Energy Limited (RNEL) has bet on the EV ecosystem through Altigreen. It has entered into an agreement to invest INR 50.16 Cr in Altigreen Propulsion Labs (Altigreen), a regulatory filing accessed by Inc42 stated.

RNEL will buy 34,000 compulsorily convertible preference shares (CCPS) in the Bengaluru-based startup. The transaction is proposed to be completed before March 2022.

“The investment is part of our company’s strategic intent of collaborating with innovative companies in new energy and new mobility ecosystems,” RIL said. RIL, however, did not disclose the stake that it will acquire upon the conversion of the shares in Altigreen.

Founded in 2013, Altigreen is an electric vehicle technology and solutions provider for commercial last-mile transportation through two, three and four-wheeled vehicles.

It has built an in-house vehicle in Bangaluru and claims to have a presence in 60 countries with 26 global patents. According to the regulatory filings, Altigreen had a turnover of INR 193.53 Lakh in FY19, INR 61.62 Lakh in FY20 and INR 103.82 Lakh in FY21.

Reliance Industries has maintained that acquisition is not a related-party transaction nor does it require any government or regulatory approval.

While this is not the first time Reliance Industries has shown interest in the cleantech ecosystem, the direct acquisition marks the retail conglomerate’s plans to expand its presence in the segment.

In October 2021, Reliance formed a joint venture with oil company BP to set up a Jio-BP branded mobility station in Navi Mumbai, i.e to set up a network of electric vehicle charging and battery swap stations at its mobility stations and other standalone locations.

Reliance BP Mobility joint venture has also tied up with Gurugram-based BluSmart to set up electric vehicle charging infrastructure. Further, Reliance aims to create EV products and services in agreement with the Mahindra Group.

Mukesh Ambani-Led Reliance Industries On A Shopping Spree

The news comes at a time when Reliance’s retail arm seems to be pulling all strings to its services online via the Jio platform. Reliance Retail has also been actively investing in and acquiring startups catering to fast-growing segments. Its most recent bet includes investing $15 Mn in Two Platforms Inc (TWO), a Silicon Valley-based deeptech startup for a 25% equity stake.

Other bets:

• Acquired retail lingerie business under the ‘Amante’ business from MAS Brands
• Acquiring a significant control of Just Dial Limited
• Acquiring subscription-based daily micro-delivery service Milkbasket, epharmacy startup Netmeds, online furniture startup Urban Ladder and lingerie ecommerce marketplace Zivame among others
• Other investments include robotics startup Adverbb Technologies, quick commerce startup Dunzo, among others.