Ultraviolette’s Loss Jumps 8X To INR 62 Cr In FY24

Electric two-wheeler maker Ultraviolette Automotive’s net loss surged over 8X in the fiscal year 2023-24 (FY24), as its expenses rose sharply. It posted a loss of INR 61.58 Cr during the year under review, an increase of 725% from INR 7.46 Cr in FY23.

The startup, which launched its first electric motorcycle in November 2022, saw its revenue from operations jump 74% to INR 15.08 Cr in FY24 from INR 8.67 Cr in the previous fiscal year.

It earned a majority of its revenue from the sale of its ebikes. Ultraviolette sold bikes worth INR 13.30 Cr in FY24 as against INR 2.45 Cr in FY23. 

The startup also earned INR 1.28 Cr from traded goods in the fiscal, down 60% from INR 3.18 Cr it made in the previous fiscal. Along with other income of INR 8.87 Cr, the startup’s total income stood at INR 23.94 Cr in FY24. 

Founded in 2016 by Narayan Subramaniam and Niraj Rajmohan, Ultraviolette sells ebike F77 Mach 2, which has a top speed of INR 155 kmph and a price tag of INR 2.99 Lakh. Its older model, Ultraviolette F77, was discontinued earlier. 

The startup has raised about $75 Mn from investors like TVS Motor, Qualcomm, Zoho, actor Dulquer Salmaan, among others. As of March 31, 2024, founders Narayan and Rajmohan held 26.31% and 22.48% stake, respectively, in the startup. TVS Motor held 25.76% stake.

On Wednesday (December 4), Inc42 exclusively reported that the startup raised INR 130 Cr in a fresh funding round. While Zoho led the funding round with an infusion of INR 90 Cr, Lingotto (formerly known as Exor Capital), Mudhal Partners and Ojas Consultation also participated in the round. 

Where Did Ultraviolette Spend?

The startup’s total expenses zoomed 312% to INR 106.89 Cr from INR 25.92 Cr in FY23, outpacing the increase in revenue. 

Employee Benefit Expenses: The startup spent INR 45.68 Cr on its employees in FY24, more than 6X of INR 7.28 Cr it spent in FY23.

Employee costs comprise salaries, provident fund, gratuity, among others. The sharp increase suggests that the startup might have increased its headcount during the year.

Cost Of Materials Consumed: The EV maker’s expenses under this head also jumped about 4X to INR 17.34 Cr from INR 4.44 Cr in FY23.

Advertising & Promotional Expenses: The startup spent INR 6.32 Cr on promotions in the fiscal, up 191% from the INR 2.17 Cr it spent last year. 

Ultraviolette competes against Ola Electric, Ather Energy, among others, in the fast-growing Indian two-wheeler EV market.