EV Two-Wheeler Manufacturer BGauss Raises Rs 161 Cr
Electric two-wheeler manufacturer BGauss has successfully raised Rs 161 crore (approximately $18.6 million) in a funding round led by Bharat Value Fund (BVF), consisting of a mix of primary and secondary capital.
Earlier in April 2022, BGauss had raised Rs 52 crore (around $6 million) from a group of investors, signifying growing confidence and interest in the electric vehicle sector.
The newly acquired funds will be strategically utilized to expand BGauss’s presence both domestically within India and internationally. The allocation of resources is aimed at capital expenditures, marketing initiatives, and significantly boosting the in-house research and development (R&D) sector to support future product launches.
Established in 2020 by Hemant Kabra, BGauss has been at the forefront of integrating contemporary design with AI-enabled technology in its scooters. These innovative vehicles promise comfort, low maintenance, robust power, fast charging capabilities, IoT integration, and overall convenience.
Currently based in Pune, the startup boasts around 45,000 satisfied customers. With ambitious expansion plans, BGauss aims to broaden its dealership network from the current 120 to 500. It also plans to establish over 1,000 touchpoints across India, indicating a robust strategy to ensure greater accessibility for its products.
The manufacturing capacity of BGauss, which stands at 100,000 units per year, is projected to scale up as consumer demand rises, reflecting the company’s preparedness to meet future market needs.
Product and Financial Projections
In its continual quest for innovation, BGauss plans to launch two new products this year. The RUV 350 scooter, launched in June 2024, exemplifies such progress, featuring a 3.5-kilowatt motor, 165 Nm peak torque, and achieving a top speed of 75 km/h.
For the fiscal year concluding in March 2024, BGauss reported a revenue of Rs 177 crore from operations, a significant increase from Rs 110 crore in FY23. Despite the jump in revenue, BGauss faced challenges with its losses nearly doubling to Rs 49.65 crore during this period.
Bharat Value Fund (BVF) plays a crucial role as a growth enabler for BGauss. Managed by Madhu Lunawat of Pantomath Capital Management, BVF is noted for investing in growth-stage, profitable businesses, showcasing its strategic focus on promising ventures in industries such as food, metals, and healthcare.
BGauss’s achievements underline the potential of electric two-wheelers in a rapidly growing market focused on sustainable mobility solutions. As the company harnesses the new investment to expand and innovate, the electric vehicle landscape in India is set for exciting developments.
Future prospects look promising for BGauss as it navigates through the competitive EV landscape. Its commitment to R&D and quality service delivery remains central to its growth strategy, ensuring it stays ahead in the race for sustainability in transport.
