Two wheeler maker TVS announced that it has bought a 14.78% stake in Bengaluru-based electric vehicle startup Ultraviolette Automotive Pvt. Ltd, which primarily works on electric two wheelers and energy infrastructure. According to a stock exchange filing, the investment is to the tune of $700K (INR 5 Cr).
According to a media report, an analyst who preferred to remain anonymous, said, “In the past, most traditional automakers except Hero and Tata Motors have neither invested in building an EV manufacturing ecosystem nor in any fundamental research. Therefore, companies need to acquire expertise to meet the government’s 2030 (all-EV) goal”
Ultraviolette was founded in December 2015 by Niraj Rajmohan and Narayan Subramaniam. Both happen to be the alumni of the BMS College of Engineering, Bengaluru.
The startup aims to build an ecosystem that addresses the transportation needs of an urban environment by designing and developing electric motorcycles and battery packs with a modern premium look.
The company, which has tested three prototypes, has not launched an electric two-wheeler yet. It has already crafted a business model, according to which it will begin the delivery of bikes by the end of 2018. It was running as a bootstrapped startup until now, with a self funded capital of $77.5K (INR 50 Lakh). It has reported a total revenue of $5K (INR 3.21 Lakh) in 2016-17, shooting up from $480 (INR 31,570) in 2015-16.
TVS is the second player in the automobile maker market to invest in electric vehicle startups, after Hero MotoCorp announced an investment of $32 Mn (INR 205 Cr) in Bengaluru-based Ather Energy Pvt. Ltd.