Electric vehicle maker Kinetic Green buys $25 million from Greater Pacific Capital

Kinetic Green Energy and Power Solutions raises $25 million from Greater Pacific Capital as part of a $40 million Series A funding round.

The company plans to expand its dealer network and enter international markets in the Middle East, Europe and Southeast Asia.

The electric vehicle market in India is forecasted to grow at 68.48% CAGR during 2023-2028.

Electric vehicle manufacturer Kinetic Green Energy and Power Solutions has raised $25 million from Greater Pacific Capital as part of a $40 million Series A funding round.

The company will use the capital raised to expand production at its facility in Supa, Maharashtra, launch products, distribute its current product line, including E-Luna, and develop new products.

Kinetic Green, founded by Sulajja Firodia Motwani, entered the electric vehicle market in 2016. The company claims to have sold over 100,000 electric vehicles, generating sales worth over INR 1000 Cr.

Motwani said: “This partnership with Greater Pacific Capital marks a pivotal moment for Kinetic Green. Our mission has always been to make electric vehicles accessible to a wider audience.”

Ketan Patel, CEO of GPC, said: “India’s successful energy transformation is critical to the world achieving its net zero emissions goals. As the country becomes the world’s third largest economy in the next 4-5 years and its middle class grows rapidly, electrification of transport will be a key part of this transformation.”

The company aims to sell more than 100,000 electric vehicles next year. It plans to expand its dealer network and enter international markets in the Middle East, Europe and Southeast Asia.

Kinetic Green offers electric two-wheelers, three-wheelers and golf carts. The recently launched E-Luna has found market interest in cities across India.

The EV market in India is growing, with electric two- and three-wheelers leading the adoption. EV penetration is expected to reach 30% by 2030, driven by government policies.

The Indian electric vehicle market is Projected Compound Annual Growth Rate (CAGR) of 68.48% from 2023 to 2028, with the market size expected to grow by USD 34,369.3 million during the period. In fiscal 2024, annual sales of electric vehicles in India crossed 1.7 million vehicles, with electric two-wheelers accounting for over 55% share.

Kinetic Green competes with Hero Electric, Ampere Vehicles and Okinawa Autotech in the two-wheeler segment and with Euler Motors and Omega Seiki Mobility in the three-wheeler segment.

The electric vehicle sector faces challenges such as high upfront costs and limited infrastructure. However, growing demand for sustainable transport and government incentives are creating growth opportunities.