TI Clean Mobility Secures Rs 580 Crore Investment from GEF Capital Partners

TI Clean Mobility, a subsidiary of Tube Investments of India (TII) under the Murugappa Group umbrella, has secured a significant investment of Rs 580 crore from GEF Capital Partners LLC, a prominent private equity firm. This investment is set to bolster TI Clean Mobility's pursuit of creating innovative electric vehicle (EV) platforms tailored for commercial use, spanning three-wheelers, tractors, and both light and heavy commercial vehicles.

The deal, formalized through definitive agreements with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively known as GEF), will see the infusion of funds through a combination of equity and compulsorily convertible preference shares (CCPS). Originally aiming for a total fundraise of Rs 3,000 crore to fuel its EV verticals, TI Clean Mobility now stands to aggregate Rs 2,530 crore upon the completion of this investment.

Recognized as a frontrunner in the passenger three-wheeler EV market in South India, TI Clean Mobility is poised to expand its footprint nationally. Moreover, the company, along with its subsidiaries, is actively engaged in marketing electric heavy commercial vehicles, with plans underway for the launch of electric tractors and small commercial vehicles in the near future.

S Vellayan, Executive Vice-Chairman of TII, expressed his satisfaction with the partnership, citing GEF's reputation for environmental stewardship as a validation of their shared vision for cleaner commercial mobility solutions. Echoing this sentiment, Sridhar Narayan, Co-founder and Managing Partner of GEF Capital Partners LLC, highlighted TI Clean Mobility's distinct market approach and the leadership of industry veteran Vellayan as key factors driving their investment decision.

Kotak Investment Banking facilitated the transaction as TICMPL’s financial adviser. This injection of capital not only strengthens TI Clean Mobility's financial standing but also propels its mission to redefine the landscape of clean mobility, aligning with broader global efforts towards sustainability and reduced carbon emissions.