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Hemant Kabra
Pune-based electric two-wheeler maker BGauss has raised Rs 161 crore in a fresh round of funding from Bharat Value Fund (BVF).
The investment, which comprises both primary and secondary capital, comes after BGauss’s earlier fundraise of Rs 52 crore in April 2022, led by Darshan Patel, founder of Vini Cosmetics Pvt. Ltd.
Purpose of fundraising
BGauss plans to use the new funds to expand its presence across India and international markets. The startup said it will channel the money into setting up capital infrastructure, boosting marketing efforts, and ramping up its in-house research and development (R&D) to roll out new products.
Founded in 2020 by Hemant Kabra, who is also one of the promoters of the electrical conglomerate RR Global, BGauss seeks to merge AI-powered technology with design to create electric scooters that offer comfort, low maintenance, power, fast charging, and Internet of Things (IoT) integration.
BGauss' market presence
In June 2024, BGauss introduced its latest electric scooter, the RUV 350, which boasts a 3.5-kilowatt motor, a peak torque of 165 newton meters, and a top speed of 75 kilometres per hour.
The startup currently serves around 45,000 customers and aims to grow its dealership network from 120 to 500, with a goal of having more than 1,000 service touchpoints across the country.
Its annual manufacturing capacity stands at 100,000 units, and BGauss says it is ready to scale up production as demand rises.
The company intends to bring two new products to the market this year, signalling its ambitions to be among India’s top five EV two-wheeler manufacturers.
Financial performance
BGauss reported about Rs 178 crore in revenue in the fiscal year ending March 2024—up from Rs 110 crore in the previous year—but its net loss nearly doubled to about Rs 49.6 crore.
Despite the losses, the startup projects that it will close the current financial year with revenue of around Rs 250 crore. It faces stiff competition in the evolving electric two-wheeler market, which includes players such as Ola Electric, Bajaj Auto, TVS Motor Company, and Ather Energy.
Bharat Value Fund CIO, Madhu Lunawat said, "As early advocates of sustainable mobility, we have been actively tracking and supporting eco-friendly initiatives since pre-pandemic times. With this transaction, both teams shall work together towards creating a greener tomorrow."