NEW DELHI: In a first of its kind investment in the alternate fuel segment, private equity players have put $20 million in India’s only electric carmaker, the Reva Electric Car Company.
The investment by Draper Fisher Jurveston (DFJ) and Global Environment Fund (GEF) would be used for Reva’s expansion in the local market. This will include capital expenditure, development of new electric car models and expansion of its domestic as well as global distribution network.
Edelweiss Capital acted as exclusive financial advisor to Reva for the entire transaction.
Reva chairman S K Maini said, “We are very pleased to have received this significant investment from GEF and DFJ and look forward to their experience in helping us to become global leader in the electric vehicle market. This investment has come at a very opportune time and we will certainly use it to leverage our global brand recognition.
H Jeffery Leonard, president and CEO of GEF, said, “Reva is GEF’s first electric vehicle company investment. The company’s strategy to deliver affordable transportation for short-distance urban commuters appeals to us because it does not seek to compete with global automotive companies on the open road.”
The existing model of the EEC-certified Reva is currently available in India and marketed in UK, Italy, Malta, Sri Lanka, Cyprus and Greece. There are over 600 Reva cars on the road in London, the largest electric vehicle market for Reva and these have been recognised as the most energy efficient electric vehicle by PowerShift of UK. With over 1,800 vehicles on the road, Reva is also being test marketed in Norway, Spain, Japan, USA, Ireland, Australia and other European countries.
Based in Bangalore, Reva was established in 1994 as a joint venture between the Maini Group and US-based AEV LLC to manufacture environment-friendly and cost-effective electric vehicles. It was commercialised in June 2001.
