Altigreen Plans To Raise Up To Rs 1000 Crore Next Year To Fund Next Phase Of Growth

Reliance Industries-backed electric commercial vehicle maker Altigreen is looking to raise up to Rs 1,000 crore next year to drive in new models, expand operations in domestic and international markets, according to company Founder and CEO Amitabh Saran.
     
The Bengaluru-based company, which had raised Rs 300 crore from various entities including Reliance earlier this year, is developing electric vehicles to cater to the last mile transportation.
     
In an interaction with PTI, Saran said the company plans to have a national presence with sales outlets spread across the country, including Tier II and Tier III towns.
     
Besides, the company also plans to enter its first international market next year, he added.
     
"Currently in the electric space there are no players with a national presence. There are only niche players with a presence in specific regions," Saran said elaborating on the company's plans to have a pan-India presence.
     
He noted that the company, with its strong R&D leanings, has already sorted out critical functions like supply chain and production capacity and is now looking to expand the sales infrastructure.
     
Altigreen has already established a production capacity of around 4,500 units a month and now aim to consolidate the sales infra with plans to have 40 dealerships in place across the country by the end of this fiscal, Saran said.
     
The company recently opened a dealership in Delhi, its third overall in the country.
     
When asked how the company plans to fund its future growth, Saran said: "We are in the process of raising more funds...If we get into the four-wheeler segment (commercial vehicles), we are already working towards that, then the requirement is much larger but probably to the tune of Rs 800 crore -1,000 crore."
     
On the time frame for raising the capital, he noted: "Probably sometime next year and it would be a combination of equity and debt."
     
The capital would be utilised to fund the company's next phase of growth where it plans to enter international geographies and add more product lines, Saran said.
     
"In 2023 we plan to be in the first geography outside India..When we created the vehicle (electric cargo vehicle neEV) we created knowing that we will be selling in India and emerging markets like South Asia, Africa, South America. We are already getting inquiries from these regions," he added.
     
The company may look at setting up assembly units, ink JV pacts or just forge partnerships in the international markets, Saran said.
     
Emphasising the importance of R&D, he noted that the company has spent years fine-tuning its technology.
     
The company holds 26 global patents in electric technology.
     
Altigreen has prowess in electric motors and generators, vehicle controls, motor controls, EV transmissions, telematics & IoT and battery management.
     
"Using the experience we are coming up with a passenger version of the neEV in the first quarter of 2023...strongly believe the three wheels have not been exploited enough in the country.. There is a difference between three wheels and three-wheeler..three wheels can be used in so many applications in so many ways," Saran said.
     
He noted that favourable government policies were aiding the growth of electric vehicles, especially in the commercial space.
     
Earlier this year, the company raised Rs 300 crore in a funding round. The Series A investment was led by Sixth Sense Ventures, along with Reliance New Energy, Xponentia Capital, Accurant International, USA and Momentum Venture Capital, Singapore.