TVS, India’s third largest two-wheeler manufacturer, has announced that it has bought a 14.78% stake in Ultraviolette Automotive Pvt. Ltd, a Bengaluru-based startup working on electric two-wheelers and energy infrastructure.
The total cost of acquisition of stake was valued at a little over Rs.5 crore, TVS said in a stock exchange filing.
Notably, Ultraviolette has yet to launch its electric two-wheelers. The startup has has tested three prototypes till now and has not launched any electric two-wheeler.
According to the exchange filing, Ultraviolette had just Rs 3.21 lakh revenue in 2016-17.
Ultraviolette was founded in December 2015 by Niraj Rajmohan and Narayan Subramaniam, alumni of the BMS College of Engineering, Bengaluru.
The development was first reported in Business Standard.
It is notable that TVS not the first two-wheeler manufacturer who has invested in the country’s electric two-wheeler startup. Earlier, in October 2016, Hero MotoCorp Ltd had acquired a stake in Ather Enerygy, which is also a electric two-wheeler startup, also backed by Ratan Tata. Hero invested Rs.205 crore in Bengaluru based EV startup Ather Energy Pvt. Ltd .
Meanwhile, TVS is developing an electric scooter code-named U218 as other two-wheeler makers such as Bajaj Auto Ltd, Honda Motorcycle and Scooter India Pvt. Ltd, Mahindra 2 Wheelers Ltd and India Yamaha Motor Pvt. Ltd are all set to launch electric two-wheelers in 2018, according to a report in The Economic Times.