Marking its foray in the electric vehicle (EV) sector, Jindal Worldwide, via its subsidiary Jindal Mobilitric, has acquired Mumbai-based EV startup Earth Energy EV.
As part of the acquisition, Jindal Mobilitric will take over Earth Energy’s commuter scooter brands – Glyde SX, Glyde SX+, and commuter and cruiser motorcycle brands – Evolve R and Evolve S, Jindal Worldwide said in a release, without disclosing the financial details of the deal.
In addition, Jindal Mobilitric will also establish a new manufacturing plant in Ahmedabad which will supplement Earth Energy’s existing manufacturing plant in Maharashtra.
Earth Energy has already appointed distributors in 10 states of the country, and Jindal Mobilitric would retain them. Besides, it will add new touchpoints by strengthening the distributor network in each market.
“Electric is the future of travel and we are happy to announce our foray into the electric vehicle segment. This acquisition will ensure that we make a strong start in our EV foray,” a Jindal Mobilitric spokesperson said.
Founded in 2017 by Rushii Shenghani and Suresh Shenghani, Earth Energy manufactures electric vehicles for consumers and businesses. It manufactures almost 96% of its power solutions and components for its electric vehicles in-house. The startup has so far raised $2.5 Mn in investments since its inception in 2017.
Jindal Worldwide’s foray in the EV segment comes at a time when the industry is witnessing a major upheaval. Incidents involving EVs catching fire have led to a lot of safety concerns and affected consumer trust. However, EV sales continue to witness a major uptick in the country.
According to Federation of Automobile Dealers Associations’ (FADA) data, 4,29,217 units of EVs were sold in FY22, compared to 1,34,821 in the previous financial year. Of this, electric two-wheeler retail sales stood at 2,31,338 units, as opposed to 41,046 units in FY21.
Overall, the Asia Pacific region is expected to emerge as the world’s largest market for emobility. The demand will mostly be driven by the high adoption rate of EVs in the region and a growing demand for taxi fleets. India and China are expected to lead in the region.
Additionally, the Centre and state governments have also doubled down on their efforts to spur the adoption of EVs. In Budget 2022, the government announced its intention to introduce a battery swapping policy and expand the charging network across the country to facilitate the switch to EVs.
In April, emobility startup Prakriti E-Mobility secured an undisclosed amount of lead investment as part of its pre-Series A funding round led by IEG Investment Banking Group. In the same month, Ahmedabad-based mobility startup Chartered Speed announced plans for an INR 600 Cr initial public offering (IPO).
Besides, in March this year, VC firm EverSource Capital acquired a majority stake in Bengaluru-based EV startup Lithium Urban Technologies.
The overall Indian EV market was pegged at $1,434.04 Bn in 2021, and is expected to grow to $15,397.19 Bn by 2027 at a CAGR of 47.09%.
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Marking its foray in the electric vehicle (EV) sector, Jindal Worldwide, via its subsidiary Jindal Mobilitric, has acquired Mumbai-based EV… News, Acquisition, Electric VehiclesInc42 Media