Abdul Latif Jameel will invest up to $220 million in Greaves Electric Mobility, one of the sub-continent’s leading mobility players. As part of the deal, Abdul Latif Jameel will initially invest $150 million for a 35.8% stake in Greaves Electric Mobility, said the companies in a joint statement. Saudi Arabia-headquartered Abdul Latif Jameel has committed one of the largest investments into India’s two-to-three-wheeler space.
Greaves Electric Mobility, a subsidiary of the diversified engineering businesses Greaves Cotton Ltd, will use the fresh capital for investment in new products, associated technologies, and marketing, it said.
The deputy president and vice chairman of Abdul Latif Jameel, Hassan Jameel, said: “At Abdul Latif Jameel, we are proud to be investing in Greaves Electric Mobility at such a critical time for India’s EV market. Together, we are embarking on a long-term journey to deliver cleaner, more sustainable – and crucially affordable – transport options to India’s population, and beyond.
“This investment from Abdul Latif Jameel is an important step towards clean, sustainable, and affordable mobility solutions truly accessible to the much wider customer base,” said Nagesh Basavanhalli, managing director and Group CEO, Greaves Cotton. Hassan Jameel, deputy president and vice chairman of Abdul Latif Jameel, said that the investment is in line with the global investor’s strategic priority of investing in the mobility of the future.
Greaves Electric Mobility is a subsidiary of one of India’s leading diversified engineering businesses, Greaves Cotton Ltd, and offers affordable, cleaner alternatives with a technology stack and after-sales support for personal mobility. The company has emerged as one of the fast-growing EV brands in the country, with retail sales of Greaves Electric Mobility standing at over 62,000 vehicles for the financial year 2022, which is a 128 percent increase from the previous year.
Greaves Electric Mobility will use the funds from the investment in new products, associated technologies, brand building, and enhanced manufacturing capacity. India is currently the world’s fourth-largest automotive market and is looking to significantly increase its share of EVs in the two-wheeler and three-wheeler segments. These segments are less dependent on commercial charging infrastructure, unlike passenger cars.
Abdul Latif Jameel’s investment in Greaves Electric Mobility continues its ongoing strategy to invest in businesses that are driving the future of global sustainable mobility. The Jameel family, who own Abdul Latif Jameel, are also early-stage investors and the third-largest shareholder of US electric vehicle manufacturer Rivian. The family is also investors in other cutting-edge innovators such as US venture-backed aerospace company Joby Aviation through their global investment arm JIMCO.
The investment in Greaves Electric Mobility also builds on Abdul Latif Jameel’s global experience in the automotive market as one of the major independent distributors of Toyota products for over 65 years, the statement noted. A total of 429,217 EVs were sold in FY22, a more than threefold rise from 134,821 units in FY21, according to the Federation of Automobile Dealership Associations of India (Fada).
Both new-age automakers like Ola and incumbents like Tata Motors Ltd have prepared ambitious EV plans and attracted millions of dollars from VC and private equity firms. Early-stage venture capital firms like Blume Ventures, Endiya Partner, and Stellaris Venture Partners have also made bets on the space.
