Electric Two-Wheeler Startup BGauss Raises INR 161 Crore from Bharat Value Fund
Electric two-wheeler manufacturer BGauss has secured a significant financial boost with an infusion of INR 161 crore from Bharat Value Fund (BVF). This latest round of funding incorporates both primary and secondary capital, aimed at reinforcing the Pune-based company’s foothold in both domestic and international markets.
BGauss plans to utilize this investment to drive several key initiatives, notably capital expenditure, marketing, and enhancing its in-house research and development (R&D) for upcoming product launches. This strategic allocation of funds is expected to accelerate BGauss’s growth trajectory and innovation in the electric vehicle sector.
In a move that reflects its commitment to continuous innovation and market expansion, BGauss is set to introduce two new products within the year. Earlier in June 2024, the company launched its latest scooter, the RUV 350. This cutting-edge model features a robust 3.5-kilowatt electric motor, delivers an impressive peak torque of 165 newton metres (Nm), and offers a top speed of 75 kilometres per hour (kmph). Such developments underline BGauss’s focus on providing advanced and reliable electric mobility solutions.
Currently serving approximately 45,000 customers, BGauss is on a mission to significantly expand its dealership network from its existing 120 to 500, aiming for over 1,000 touchpoints across India. This expansion strategy is in response to the increasing demand for its products and to enhance its accessibility nationwide. Moreover, the company’s manufacturing capacity, which stands at 100,000 units annually, is poised for scaling to meet the projected demand surge.
Founded in 2020 by Hemant Kabra, a key promoter of the electrical conglomerate RR Global, BGauss represents the group’s ambitious foray into the electric two-wheeler market. In his words, “This funding will accelerate our mission to be among the top five EV two-wheeler players and bring cutting-edge, reliable electric scooters to the market.”
Financially, BGauss reported a revenue of INR 178.4 crore for FY24, with a net loss of INR 49.6 crore. Despite these figures, the company is optimistic about its growth, aiming to close the current financial year with revenues reaching approximately INR 250 crore.
The electric two-wheeler market in India is witnessing stiff competition, with industry heavyweights like Ola Electric, Bajaj Auto, TVS Motor Company, and Ather Energy all competing for a share. Each of these companies is striving to differentiate their offerings and capture greater market share in this burgeoning sector.
Bharat Value Fund, a Category II Alternative Investment Fund (AIF) managed by Pantomath Capital Management cofounder Madhu Lunawat, has been instrumental in this funding. The fund’s portfolio includes successful investments in brands such as Haldiram Bhujiawala, cookware giant Aniket Metals, and diaper manufacturer Millennium Babycares. Their philosophy centers around supporting growth-stage, profitable enterprises that are committed to effecting positive environmental changes.
Madhu Lunawat stated, “This investment reaffirms our commitment to empowering environmentally conscious businesses that drive positive change. As early advocates of sustainable mobility, we’ve been actively tracking and supporting eco-friendly initiatives since pre-pandemic times.”
BGauss’s journey in the electric two-wheeler industry is a testament to the rapidly evolving landscape of sustainable transportation. The company’s future plans, bolstered by this latest funding, signal a strong commitment to innovation, quality, and market leadership in the realm of electric mobility.
