Altigreen Propulsion, an electric vehicle (EV) manufacturer backed by Reliance Industries, to raise $85 million (INR 700 crore) in funding at a valuation of $350 million. The Bengaluru-based startup, known for its three-wheeler cargo EVs, aims to utilize the funds to enhance its production capacity and invest in new models, according to Bloomberg.
While the discussions are still in the early stages, the details of the deal could be subject to change based on ongoing deliberations. Additionally, some of Altigreen’s existing investors may consider selling their shares during the fundraising process. Altigreen’s co-founder and CEO, Amitabh Saran, confirmed to the publication that the company is currently in the midst of raising capital and intends to close the round by July.
Altigreen had previously revealed plans to raise up to INR 1,000 crore in 2023 for expanding operations and venturing into global markets, as Saran had mentioned in an interview with news agency PTI in October last year. Since its establishment in 2013 by Saran, Shalendra Gupta, Lasse Mocklegaard, and John Bangura, Altigreen claims to hold 27 granted patents and has an annual production capacity of 55,000 vehicles.
In February last year, Altigreen secured INR 300 crore in a Series A funding round led by Sixth Sense Ventures, with participation from Reliance New Energy Ltd. To date, the company has raised a total of $39 million and boasts notable investors such as Xponentia Capital Partners, Momentum Venture Capital, and Accurant International.
While the Indian startup ecosystem is currently facing a funding slowdown, investments in the EV space have continued as venture capital and private equity firms seek to capitalize on the growing EV market. Several EV-based startups have recently secured funding, including EMO Energy, RACEnergy, and Okinawa Autotech, indicating the diverse segments emerging within the EV ecosystem, ranging from battery management systems to sustainable mobility.