Listed company Rattan India Enterprises is investing Rs 150 crore in electric motorcycle maker Revolt Intellicorp, founded by Micromax co-founder Rahul Sharma, for a 43% stake in the company.
RattanIndia Group will get 50% of the board seats in Revolt and Rajiv Rattan will take over as the non-executive chairman of the company.
The electric vehicles (EV) maker meanwhile will get much-needed capital to ramp up production and expand sales to more geographies after disruptions in the past year led to a delay in its plans and a long queue of waiting customers. It presently sells the RV400 electric motorcycle in six cities in India.
“We have a clear runway in the electric motorcycle space and you can expect more products coming soon. We will be dominating on the motorbike side,” Sharma told ET.
Revolt is one of the few electric motorcycle makers in India presently, including One Electric Motorcycles, as majority of EV makers focus on scooters. Its revenue for the past two financial years has been about Rs 41 crore, as per stock exchange filing from RattanIndia Enterprise Limited (REL).
This is REL’s first deal after moving away from the infrastructure business with the intent of investing in “new-age” companies. Earlier known as RattanIndia Infrastructure, the company recently renamed itself and will now be the holding company of the RattanIndia Group’s new investments.
“We were looking at various opportunities, which we will continue to do. We have been looking at EV space with huge interest and Rahul has a track record of creating Micromax and giving tough competition to multinational brands,” Rajiv Rattan told ET.
The Group is also looking to invest in a fintech company, as per a report by the Hindu Business Line.
The company will however have to overcome several challenges like a dismal local supply chain in India, muted response from consumers to electric vehicles and rising competition. Companies like Ola Electricc have invested huge capital in setting up EV operations.
Revolt Intellicorp has kept open the option of raising more capital further down the line as it brings newer products, Sharma said.
