TVS looks to raise up to $5,000 cr in EV push

TVS Motor Co. Ltd is in advanced talks to raise 4,000-5,000 crores from private equity companies to fund the group's newly established electric mobility arm's expansion strategy." TVS intends to consolidate its position as a leader in the EV segment by expanding its network coverage across the country," one of the two people with direct knowledge of the matter said.

TVS Motor could raise $500-650 million, which would be used for organic and brownfield expansion in the electric vehicle industry. TVS hopes to enhance its EV business's revenue share by leveraging the growing demand for electric vehicles worldwide. "Electric vehicles are undoubtedly the future of mobility, and TVS intends to be a leader in this field.

As India focuses on decreasing vehicular pollution in cities and reducing reliance on fossil fuels in the face of rising fuel prices, TVS Motors is doubling down on electric vehicles.In India's notoriously polluted cities, two-wheeler users are increasingly moving to electric scooters in order to save money on gas and minimize pollution.

Private equity firms and venture capital groups are pouring money into electric vehicle businesses in India, encouraged by the industry's possibilities and the government's mandate to invest in clean technologies. In 2021, funding for EV tech firms reached an all-time high of $444 million, spread over 25 agreements.

Startups, though, aren't the only ones who benefit. In October, TPG Rise Climate, a private equity group, paid Rs 7,500 crore for a 15% stake in Tata Motors' electric vehicle business. In 2021, startups like Ola Electric ($253 million), Blusmart ($25 million), Simple Energy ($21 million), Revolt ($20 million), and Detel ($20 million) received the most funding.