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E-2W startup Quantum Energy Ltd, part of Vijayawada-based Kusalava Group, a five-decade-old pioneer in the manufacture of key engine parts (cylinder liners) for ICE vehicles, plans to raise about ₹100 crore through private equity players as the Telangana-headquartered company gears up to ramp up EV business with the establishment of a new manufacturing unit and launch of new products in electric two and three-wheeler segments.
Last year, Kusalava Group forayed into the electric two-wheeler segment, which the group believes will see faster adoption and its 5-decade-long design and engineering expertise along with its vast pan-India after-market network will come in handy to establish its name in the battery-powered vehicle segment.
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It has already introduced three high-speed electric scooters; one more product is on the anvil, and it is also developing an electric three-wheeler. Today, the company’s electric two-wheeler capacity is about 5,000 units a month, which will be ramped up to 10,000 units a month by March 2024 via a new factory set in Telangana.
Quantum Energy Ltd has tied up with Korea-based MBI and China-based Aima Technology to design and develop electric two and three-wheelers.
To fund its growth plans, it’s proposing to raise about ₹100 crore from PE firms. “We have already given a mandate to one person to raise the funds. The money is being raised to fund the capacity expansion, support new model development, and tap export markets,” said Prasad R K Chukkapalli, Managing Director, Quantum Energy told businessline.
‘Win-win’
Currently, it sells 3 electric scooters, which offer a range of 80-120 km, targeted at different application areas. It will soon launch another electric scooter, which will come with a FAME II subsidy, in March this year.
It sells its e-scooters in Andhra Pradesh, Telangana, Orissa, Maharashtra and Karnataka. In Tamil Nadu, it has tied up with Calliper Green Vehicles, a low-speed electric scooter maker, as its marketing partner.
Calliper’s EV network includes 20 outlets and will ramp up to 150 outlets in 6 months to sell Quantum’s e-scooters. After the recent new regulations, Calliper decided to move to sell high-speed scooters and having set up an e-scooter network, it has decided to join hands with Quantum.
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“The association is a win-win as Quantum was looking for partners and Callipher was planning to move to the high-speed segment. We have done such as deal in Karnataka and will be doing the same in a few other states,” said Chukkapalli.
Quantum will soon expand to Rajasthan, Madhya Pradesh, Chhattisgarh, Delhi, Uttar Pradesh and Jammu & Kashmir to sell its e-scooters.
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