13 February 2024, Tork Motors, an electric vehicle manufacturing startup supported by Bharat Forge, has successfully raised $6 million in its recent funding round. Maxis Capital, the investing entity, contributed the capital in what marks the Pune-based company’s second institutional round after a hiatus of two and a half years.
Financial Injection Details:
The board of Tork Motors passed a special resolution, paving the way for the issuance of 1 equity share and 6,912 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 72,425 each. This move allowed the company to secure Rs 50 crore ($6 million), as revealed in regulatory filings.
Maxis Capital’s investment involves the issuance of preference shares, which are set to convert into equity shares based on the stipulated conversion period. The funding from Maxis Capital positions the company strategically for its growth and expansion plans in the electric vehicle market.
About Tork Motors:
Founded in 2010, Tork Motors has gained prominence as an electric two-wheeler manufacturer, with its flagship product, Kratos R. The company initiated its market presence in Mumbai and Hyderabad, boasting a monthly production capacity of 4,000-5,000 units. Tork Motors aims to extend its geographical footprint, targeting 70–100 cities by the end of 2023.
In October, Tork Motors announced a strategic partnership with Bolt Earth, an electric vehicle software and charging infrastructure provider. The collaboration aimed to offer 30,000 charging points to Tork Motors’ customer base, enhancing the charging infrastructure for electric vehicles.
Ownership Structure and Valuation:
Bharat Forge holds the majority stake in Tork Motors at 52.46%, followed by Maxis Advisors at 13.51%. Founder and CEO Kapil Shelke retains 19.42% ownership. Post-allotment, the company’s valuation stands at approximately Rs 370 crore ($45 million), according to data from startup intelligence platform TheKredible.
Tork Motors reported a sevenfold increase in operating revenue, reaching Rs 35.5 crore in FY23 compared to Rs 4.5 crore in FY22. However, losses experienced a 5.7X surge, rising to Rs 47.9 crore in FY23 from Rs 8.34 crore in FY22.
In the electric vehicle market, Tork Motors faces competition from industry players such as Ultraviolette Automotive, Revolt, and Pure EV.
Conclusion:
The successful funding round positions Tork Motors for accelerated growth and expansion within the burgeoning electric vehicle sector. With strategic alliances, a robust ownership structure, and a focus on market expansion, Tork Motors aims to make significant strides in the evolving landscape of electric mobility.
