New Delhi: Ola Electric, the current electric two-wheeler market leader, is set to enter the capital markets this week to fuel its growth plans. However, not many may be aware that another Indian EV start-up, called Srivaru Motors, has taken that route to fuel its dreams, as big as Ola Electric’s, if not bigger. The difference is, the latter got listed overseas, in Nasdaq.
The Coimbatore-based Srivaru Motors (SVM), founded by Mohanraj Ramasamy, an engineer who had a 3.5 year stint at Tesla, started its journey as India’s first electric performance motorcycle maker in 2020. Its first model, Prana Grand, powered by a 4.32 kWh lithium-ion battery pack, claimed a top speed of 123 kmph, and a ‘true range’ of 126 km. The pandemic, and other challenges posed hurdles on the business journey, and things didn’t go as planned.
As part of a reorganised strategy, Srivaru Motors created a holding company, Srivaru Holding, in Cayman Islands, and got into a ‘Business Combination Agreement’ with Mobiv Acquisition Corp, a Delaware (USA)- based company ‘targeting the electric vehicle (EV) industry across Europe, Israel, and Asia’, which facilitated its listing at Nasdaq. Srivaru Motors is learnt to be valued at USD 400 million at the time of listing. The stock started trading on December 11, 2023.
Now, Srivaru Motors is planning a renewed EV journey with the launch of ‘Prana 2.0’, scheduled for August 22. According to its maker, the Prana 2.0 comes with over 100 improvements. The motorcycle will have two variants – Elite and Grand. The Prana Elite, with a 8.44 kwh battery pack, and a claimed 0-60 kmph performance of less than 4 seconds, is priced at INR 3.2 lakh.
The Prana Grand, with a 5.0 kwh battery pack, has a claimed riding range of 150 km, that is 100 km less than the Elite variant.
“What we want to do is not just bring another electric bike in the market because the market is ripe for it, but we want to bring the best bike in the market. We are doing this for the long run,” says Felix Heinimann, CMO, Srivaru Motors.
Big ambitions
The driving factors for Mobiv Acquisition Corp to back SVM also include the view that India is also seen as an “economic powerhouse” in USA, and that “the automotive industry is unbeatable in its growth in India”. At the company level, SVM harbours big ambitions.
“When it comes to the philosophy of SVM, what we want to build is an Indian industrial conglomerate which actually provides an entire ecocycle, an entire ecosystem, not only to the EV industry but also to the future urban mobility,” says Heinimann. It is learnt that SVM plans to add a shared mobility service, using its motorcycles, as a new business.
Like Ola Electric, SVM also plans to build its own batteries. Currently, it sources its battery pack from a major battery maker in China. “ We have spent a lot of time, a lot of money to find the best sources, the best batteries. We are the only ones who have a steel pack battery pack in an EV in the market,” says Heinimann.
Both SVM and Ola Electric are among companies which have signed MoUs with the Tamil Nadu (TN) Government to build a major EV industry in the state. TN’s 2019 EV policy envisaged total investment of INR 50,000 crore to set up a comprehensive local EV ecosystem.
Regulatory hurdle
While SVM got listed in the Nasdaq, it recently received a notice for delisting for non-compliance of the Nasdaq requirements of (i) a minimum Market Value of Publicly Held Shares of USD15,000,000, and (ii) a minimum Market Value of Listed Securities of USD 50,000,000. SVM has requested for a hearing to appeal against the notice. Sources say there have been developments since the issuance of the notice, which could help SVM meet the required norms and stay listed.
The road ahead
In its first phase, SVM sold 200 units of the Prana. With all improvements, and a revised and renewed strategy, Mohanraj Ramasamy (who continues to be the founder-CEO) and his team have their job cut out in order to realise the aspirations of building an ‘industry conglomerate’.
