Two-wheeler automobile company TVS Motor is reportedly in talks with TPG Capital and KKR & Co to raise at least $300 million for its electric vehicle (EV) business.
Moneycontrol was the first to report that the company had plans to seek investments for its EV segment, TVS Electric Mobility, which it carved out as a subsidiary in December last year.
Talks of investments follow multiple acquisitions by TVS Motor in the EV space.
It acquired a majority stake in GO AG, Switzerland, and its subsidiary, EGO Movement. EGO Movement is a Swiss technology company, with a strong presence across Europe and a portfolio of e-bikes, e-cargo bikes and e-scooters.
The company also picked up a 75 percent stake in Swiss E-Mobility Group (SEMG), an e-mobility solutions provider in Europe and the largest pure-play e-bike manufacturer in Switzerland with around 20 percent market share.
Additionally, TVS Motor's Singapore subsidiary made investments in British e-bike manufacturer EBCO UK and Alexand'Ro Edouard'O Passion Vélo Sàrl which is engaged in the sale of e-bikes and its accessories.
Recently, the EV segment has seen traditional automobile players in the two and four wheeler spaces increasingly raise money and make investments to support growth.
Tata Motors announced a one billion dollar investment into its EV business by a consortium of TPG Rise Climate and Abu Dhabi’s ADQ in October last year.
Recently, Greaves Cotton became the other big player in the segment to raise overseas capital to strengthen foothold in the fast growing EV segment. It received an investment of $220 million from family-owned Saudi Arabian business Abdul Latif Jameel.
Ather Energy, electric scooter maker, raised $128 million from existing investor Hero Motor Corp and the National Investment and Infrastructure Fund, Indian government’s sovereign wealth fund.
On December 4, Moneycontrol had reported that Hero Electric was looking to tap private equity funds and raise capital.