TI Clean Mobility Private Limited (TICMPL), a subsidiary of Tube Investments of India Limited (TII), has signed definitive documents on 6th May 2024 with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively GEF) to raise a capital of about Rs. 580 crores in the form of equity and compulsorily convertible preference shares (CCPS).

As announced earlier, TICMPL planned to raise capital to the tune of Rs. 3,000 crores to fund its multiple verticals of electric vehicles. Upon closing of the proposed investment from GEF, the overall fund raising would aggregate to Rs. 2,530 crores.

TICMPL is focused on creating EV native commercial vehicle platforms across three-wheelers, tractors, small and heavy commercial vehicles. TICMPL, directly and through its subsidiaries, also sells electric heavy commercial vehicles and are in advanced stages of developing electric tractors and electric small commercial vehicles which are expected to be launched in the coming quarters.

Commenting on the above fund raising, S. Vellayan, Executive Vice Chairman, TII said "GEF is renowned for their commitment to environmental stewardship and their investment in TICMPL validates our vision and strengthens our resolve to provide cleaner commercial mobility solutions."

On its investment into TICMPL, Sridhar Narayan, Co-Founder and Managing Partner of GEF Capital Partners LLC said "We are excited to partner with the Murugappa Group and invest in TI Clean Mobility - its differentiated platform targeting productive sub-segments with a strong focus on electrification. Led by industry veteran S. Vellayan and supported by a talented team, they've shown early success with their unique go-to-market strategy. We look forward to supporting them in shaping the future of clean mobility."

Kotak Investment Banking acted as TICMPL's exclusive financial advisor for this transaction.