TI Clean Mobility, a Murugappa group company and subsidiary of Tube Investments of India (TII), has signed definitive agreements to raise an additional capital of Rs 675 crore ($91 million) by way of CCPS (compulsory convertible preference shares). As per the agreement, Multiples along with other co-investors would invest an aggregate amount of Rs 600 crore ($81 million), while TII would invest Rs 75 crore ($10 million). In February this year, TI Clean Mobility had announced its capital infusion plan of Rs 1,950 crore ($263 million) and signed definitive agreements with Multiples, State Bank of India, and TII to raise capital up to Rs 1,275 crore, of which Rs 817 crore has already been infused in the form of equity and CCPS. With the execution of definitive agreements for the balance of Rs 675 crore, the capital infusion plan for Rs 1,950 crore has been fully tied up, according to a statement by the company.
TI Clean Mobility has already unveiled its passenger electric three-wheeler and has started deliveries to dealerships across south India. The company’s subsidiaries are designing and developing electric tractors and electric heavy commercial vehicles and are in the process of setting up manufacturing facilities in Tamil Nadu and Haryana. With this funding, TI Clean Mobility aims to expand its product portfolio, boost its research and development capabilities, and enhance its manufacturing capacities to meet the growing demand for electric vehicles in India.
Commenting on the investment, L Ramkumar, Group Chairman of Murugappa Group, said, “This investment is part of our group’s commitment to a sustainable future and is a reflection of our belief in the vision of TI Clean Mobility to become a leading player in the Indian EV market. We believe that TI Clean Mobility is well-positioned to leverage the significant opportunities in the EV space in India and globally.”
The Indian government has been actively promoting electric mobility as part of its efforts to reduce carbon emissions and pollution. The country aims to achieve a target of 30% electric vehicle penetration by 2030, which is expected to drive demand for electric vehicles in the coming years. This presents a significant opportunity for companies like TI Clean Mobility to expand their presence in the Indian electric vehicle market.
TI Clean Mobility aims to cater to this growing demand by developing innovative and cost-effective solutions for electric vehicles that are suitable for Indian conditions. The company’s focus on sustainable mobility solutions and commitment to environmental stewardship have earned it a reputation as a leader in the electric vehicle space in India.
With the latest investment, TI Clean Mobility is well-positioned to accelerate its growth and expand its footprint in the Indian electric vehicle market. The company’s strong partnerships with investors like Multiples and TII, as well as its commitment to innovation and sustainability, make it a key player to watch in the fast-evolving Indian electric vehicle market.
Additionally, TI Clean Mobility has been actively partnering with other companies in the EV space to expand its offerings and reach. In February of this year, the company announced a collaboration with IIT Madras to develop and manufacture lithium-ion battery cells for electric vehicles. The partnership aims to establish a research and development center on the IIT Madras campus and leverage the institute’s expertise in battery chemistry and cell engineering.
TI Clean Mobility’s focus on developing sustainable and environmentally friendly mobility solutions comes as India pushes for greater adoption of electric vehicles as part of its efforts to reduce air pollution and carbon emissions. The country aims to have 30% of all new vehicles sold by 2030 to be electric, and has launched various initiatives and incentives to encourage the adoption of EVs.
With the latest round of funding, TI Clean Mobility is well-positioned to continue expanding its portfolio of EV products and manufacturing capabilities. The company is expected to play a significant role in India’s electric vehicle industry, which is poised for substantial growth in the coming years.
