Electric three-wheeler manufacturer TI Clean Mobility (TICMPL) signed definitive agreements with Tube Investments of India (TII), Multiples Private Equity Fund III, State Bank of India (SBI), and other co-investors to raise ₹19.5 billion (~$235.7 million) in equity and compulsorily convertible preference shares (CCPS).

The total investment by Multiples, SBI, and other co-investors would amount to ₹12 billion (~$145 million). TII’s investment would be ₹7.5 billion (~$90.6 million) of which ₹6.39 billion (~$77.2 million) has already been invested through equity and inter-corporate deposit.

TI Clean Mobility plans to raise an additional ₹10.5 billion (~$127 million) by March 2024, bringing the total fundraise to ₹30 billion (~$362.6 million).

It also plans to expand its presence in the electric mobility industry through organic and inorganic methods. The funds will facilitate the expansion of the company’s operations, including the acquisition of other businesses and capital expenditure.

TI Clean Mobility is a wholly-owned subsidiary of Tube Investments of India (TII), part of the Murugappa Group.

The company entered into a securities subscription and shareholders’ agreement with Multiples and State Bank of India recently. The investors will be making an immediate investment of ₹12.75 billion (~$154.1 million) including existing investments.

Under this agreement, the investors will subscribe to 100 equity shares of TI Clean Mobility and Series Al CCPS worth ₹6 billion. TII will also subscribe to Series B CCPS worth ₹4.25 billion.

In addition to the immediate investment, Multiples and other investors have the right to subscribe for an additional ₹6 billion (~$72.5 million). Upon subscription of this additional sum, TII will invest ₹750 million (~$9 million).

TI Clean Mobility recently launched its passenger 3-wheeler electric vehicle. The company is also working on designing and developing electric tractors and heavy commercial vehicles through its subsidiaries.

“TICMPL is focused on the productive segment of the electric vehicle industry, viz., 3-wheelers, tractors, and heavy commercial vehicles. The confidence reposed by esteemed investors such as Multiples and SBI will give TICMPL the necessary impetus to fulfill our ambition by scaling our operations through organic and inorganic means,” said M.A.M Arunachalam, Chairman of TII and TICMPL.

The electric vehicle industry has just emerged from a record-breaking year of selling more than a million units. Stakeholders believe that electric vehicle sales in 2023 could easily surpass 2022 levels.