Raptee, an electric motorcycle startup, secured $3 million in its Pre-Series A funding round led by Bluehill Capital, a deep-tech venture capital firm.

Notable industry figures, including Eugene Mayne, Founder and CEO of Tristar Global; Lakshmi Narayanan, Former CEO of Cognizant; Ramesh Kannan, Managing Director at Kaynes Technology; and Chandu Nair, Director at Shankara Building Products, along with other high-net-worth individuals from India and the UAE, also participated in this all-equity funding round.

The funds raised will be invested in expanding the company’s manufacturing facility, acquiring machinery and tooling for the upcoming motorcycle launch, and growing the workforce.

The company stated that it is introducing high-voltage drive train technology to the Indian two-wheeler EV segment, making it compatible with the growing CCS2 public charging network. According to the company, this technology enhances battery safety and life.

The Tamil Nadu Government had allocated 36 acres to the company and other incentives for scaling up manufacturing. Raptee’s maiden factory, situated on a three-acre expanse in Chennai, will predominantly accommodate its Research and Development team. This facility is designed with an annual production capacity of 100,000 units, serving as Raptee’s primary manufacturing hub for the next 24 months.

The manufacturing plant will host a dedicated battery pack assembly line. The proposed investment for this factory totals ₹800 million (~$9.6 million).

Dinesh Arjun, Co-founder and CEO of Raptee emphasized the transition to EVs as a significant upgrade from traditional internal combustion engine vehicles.

Over the last 12 months, the company’s team has grown steadily to over 50. Raptee has initiated R&D for the next line of products and plans to expand the team size to 150 per the business plan.

Raptee received funds from the Automotive Research Association of India, the nation’s automobile certifying body, to develop a high-voltage powertrain in March. Anticipated for an early 2024 launch, Raptee’s inaugural motorcycle will debut with two experience centers in Chennai and Bangalore. Subsequently, the company plans to extend its presence to eight more cities within the first year.

EV sales in India reached 371,340 units in the second quarter of 2023, a year-over-year increase of 66% compared to 223,293 units sold in the same period last year. Two-wheeler EVs accounted for nearly 59% of the total EVs sold during the quarter.

Last month, a parliamentary committee recommended that the government should extend Phase II of the FAME program for at least three years beyond March 31, 2024, to make EVs a norm in the Indian automobile market.