TI Clean Mobility Private, a wholly owned subsidiary of Tube Investments of India (TII) and part of the Murugappa Group has signed definitive documents with TII, Multiples Private Equity Fund III, State Bank of India along with other co- investors to raise capital up to Rs 1,950 crore in the form of equity and CCPS.

The company says the total investment by Multiples, SBI and other co-investors would aggregate up to Rs 1,200 crore. TII’s total investment would be Rs 750 crore, of which it has already invested Rs 639 crore by way of equity and ICD. Furthermore, TI Clean Mobility plans to raise additional funding of Rs 1,050 crore by the end of March 2024, thereby taking the total fund raise to Rs 3,000 crore.

The EV start-up has already unveiled its passenger electric three-wheeler; sales of which are expected to ramp up over the next few quarters. The company, through its subsidiaries, is driving the design and development of electric tractors and electric heavy commercial vehicles.

M A M Arunachalam (Arun Murugappan), Chairman, TII and TICMPL said, “TICMPL is focused on the productive segment of electric vehicle industry viz, three-wheelers, tractors and heavy commercial vehicles. The confidence reposed by esteemed investors such as Multiples and SBI will give TICMPL the necessary impetus to fulfil our ambition by scaling our operations through organic and inorganic means.”

S Vellayan, Executive Vice-Chairman, TII said “We aim to play a significant role in the electrification of vehicles in the productive segment to enable India’s 30 percent EV penetration target by 2030. Our Group’s experience across segments such as auto components, vehicle finance, agri business and motors will give us the unique ability to build a large EV native OEM.”

Renuka Ramnath, Founder, MD & CEO, Multiples said “We are privileged and excited to partner with the Murugappa group in its journey to build India’s leading electric commercial vehicle OEM. In line with our strategy of identifying big shifts and investing with category champions, we believe that TICMPL under the leadership of Arun Murugappan and S Vellayan will build a strong brand with a differentiated customer proposition.”