Reliance-Backed Altigreen In Talks To Raise $85 Mn, Eyes $350 Mn Valuation

Reliance-backed electric vehicle (EV) manufacturer Altigreen Propulsion reportedly plans to raise a funding of $85 Mn (INR 700 Cr) at a valuation of $350 Mn. 

The three-wheeler cargo EV maker plans to use the funds to shore up its production capacity and invest in new models, Bloomberg reported. 

However, the talks are still in early-stages and the contours of the deal could change depending on deliberations, the report said, adding that some of Altigreen’s existing investors could also be looking to sell their shares during the fundraise. 

Altigreen cofounder and CEO Amitabh Saran confirmed to the publication that the startup is in the middle of raising capital and is looking to close the round by July. 

Saran didn’t respond to Inc42’s queries on the issue till the time of publishing this story.

It must be noted that Saran told news agency PTI in October last year that Altigreen was in talks to raise up to INR 1,000 Cr in 2023 to expand operations and foray into global markets. 

Founded in 2013 by Saran, Shalendra Gupta, Lasse Mocklegaard and John Bangura, Altigreen claims to have 27 granted patents and an annual production capacity of 55,000 vehicles. 

In February last year, the Bengaluru-based startup raised INR 300 Cr in a Series A funding round led by Sixth Sense Ventures. The round also saw participation from Reliance New Energy Ltd. 

Aligreen has so far raised a funding of $39 Mn and counts marquee names such as Xponentia Capital Partners, Momentum Venture Capital and Accurant International among its backers. 

The latest development comes at a time when the overall Indian startup ecosystem is reeling under the funding winter. Despite this, investments have continued to trickle into the EV space as venture capital and private equity firms look to cash in on the EV mania.

Earlier this month, early stage VC firm AdvantEdge launched its third fund that would invest $80 Mn-$100 Mn in mobility solutions, especially EV-based startups. 

Last week, EMO Energy bagged $1.2 Mn in a seed round led by Transition VC. Prior to that, another deeptech battery swap platform RACEnergy secured $3 Mn in debt and equity from growX ventures and other investors. 

It was also recently reported that EV two-wheeler manufacturer Okinawa Autotech was mulling raising $100 Mn from private equity firms. The allure of the EV ecosystem has spawned a host of segments within the space, ranging from battery management systems to sustainable mobility. 

As per a report, the homegrown EV market is projected to soar to a market size of $113.99 Bn by 2029.