TI Clean Mobility (TICMPL), a wholly-owned subsidiary of Tube Investments of India, a Murugappa Group company, has raised ₹5.8 billion (~$69.5 million) in equity and convertible preference shares from South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively GEF Capital Partners).

TICMPL had first ventured into last mile mobility with electric three-wheeler portfolio under the brand ‘Montra Electric.’

The company had earlier announced plans to raise ₹30 billion (~$35.93 billion) to fund its multiple verticals of electric vehicles (EV). The overall fundraising would aggregate to ₹25.3 billion (~$299.76 million) with the investment from GEF.

TICMPL aims to develop EV native platforms for commercial vehicles such as three-wheelers, small and heavy commercial vehicles, and tractors. The company also plans to launch electric tractors and small commercial vehicles.

“We’re excited to partner with the Murugappa Group and invest in TI Clean Mobility – its differentiated platform targeting productive sub-segments with a strong focus on electrification,” said Sridhar Narayan, Co-Founder and Managing Partner of GEF Capital Partners.

Kotak Investment Banking was TICMPL’s financial advisor for the transaction.

In March 2024, the Ministry of Heavy Industries, to make public transportation cheaper and eco-friendly, launched the Electric Mobility Promotion Program 2024. The program targets electric two-wheelers and three-wheelers, including e-rickshaws, e-carts, and L5 category vehicles.

EV sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% against the 347,676 units sold in 2023. The EV market exceeded the 100,000-unit threshold each month during the quarter. March witnessed the highest-ever monthly sales of 204,337 units.

India is also offering international manufacturers a reduced customs duty rate of 15% for five years if they invest at least ₹41.5 billion (~$500 million) to establish EV manufacturing facilities in the country. This relaxation is subject to certain conditions, such as only EVs with a Cost, Insurance, and Freight value of $35,000 or above are eligible for import under this program.