Altigreen Propulsion Labs, a Bangalore-based commercial electric vehicle (EV) manufacturer, announced that it has raised ₹3 billion (~$40 million) in a Series A funding round, a day after Reliance New Energy Limited (RNEL) announced its investment of ₹501.6 million (~$6.66 million) in the company.

The investment round was led by Sixth Sense Ventures, Reliance New Energy Limited, Xponetia Capital, Accurant International, and Momentum Venture Capital.

The funding will help Altigreen boost its EV manufacturing, launch new products, and strengthen its countrywide presence. The funding will also accelerate research and development (R&D), fast-paced EV adoption, and develop a pan-Indian network to offer last-mile transportation solutions in India.

In his statement, Nikhil Vora, Founder & CEO of Sixth Sense Ventures, said, “Altigreen fits perfectly well into the Sixth Sense philosophy of backing first-generation Founders, disrupting large categories for the consumer of tomorrow. Further, we draw comfort with Altigreen’s primary focus on the 3W segment within the EV space – which fundamentally is less cluttered and under-penetrated, as well as benefits multiple stakeholders in the value chain.”

Reliance New Energy Limited (RNEL), the green energy arm of Reliance Industries Limited,  also signed a  agreement with Altigreen Propulsion Labs for the subscription of 34,000 Series A compulsorily convertible preference shares of ₹100 each for ₹501.6 million (~$6.66 million), marking its entry into the EV ecosystem.

The transaction is expected to be completed before March 2022.

Reliance said the investment aligns with its strategic intent to collaborate with innovative companies in new energy and new mobility ecosystems.

The company did not say what would be the equity shareholding against the investment.

Altigreen develops electric two-wheelers, three-wheelers, and four-wheelers for the transportation sector. Its existing patent portfolio spans 60 countries with 26 global patents, including electric motors and generators, vehicle controls, motor controls, EV transmissions, telematics and internet of things, and battery management.

Amitabh Saran and Shalendra Gupta, co-founders of Altigreen, said, “The future of India’s automobile industry is electric, and we have already laid out a roadmap to achieve fast-EV adoption, mainly in the commercial segment. The deeper e-commerce penetration and growth in last-mile delivery have catapulted the demand for commercial, road-ready EVs, and this year will be transformative for us.”

The green energy arm of Reliance Industries has signed an agreement with sodium-ion battery technology provider Faradion to acquire a 100% stake for £94.42 million (~$127.42 million). The UK-based sodium-ion battery technology company has extensive IP portfolios covering several aspects of sodium-ion technology.

Last month, Reliance Industries signed a memorandum of understanding with the Government of Gujarat to invest ₹5.95 trillion (~$80.61 billion) in renewables projects as a part of the investment promotion activity for the Vibrant Gujarat Summit 2022.