Also, it plans to allocate the funds toward capital expenditure, marketing efforts, and enhancing in-house research and development (R&D) for upcoming product launches.
BGauss is set to launch two new products this year, according to its founder and managing director, Hemant Kabra. In June 2024, the company introduced its latest scooter, the RUV 350, which features a 3.5-kilowatt electric motor, delivers a peak torque of 165 newton metres (Nm), and offers a top speed of 75 kilometres per hour (kmph).
The company, which currently serves around 45,000 customers, aims to expand its dealership network from 120 to 500, with a target of establishing over 1,000 touch points across India. BGauss’s manufacturing capacity, currently at 100,000 units per year, is also set to scale as demand increases, he said.
BGauss was founded in 2020 by Kabra, one of the promoters of the electrical conglomerate RR Global. This initiative was part of the group’s entry into the electric two-wheeler segment.
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“This funding will accelerate our mission to be among the top five EV two-wheeler players and bring cutting-edge, reliable electric scooters to the market,” said Kabra.BGauss reported a revenue of Rs 178.4 crore in FY24 and a net loss of Rs 49.6 crore, according to Tracxn. The company aims to close the current financial year with a revenue of around Rs 250 crore.
The electric two-wheeler market in India has become increasingly competitive recently, with players such as Ola Electric, Bajaj Auto, TVS Motor Company, and Ather Energy vying for market share.
Notably, Ola Electric, based in Bengaluru, has faced challenges including regulatory issues, management exits, and customer complaints regarding vehicle quality and after-sales support, leading to a decline in its market share, as reported by ET.
BVF, a Category II Alternative Investment Fund (AIF) managed by Pantomath Capital Management cofounder Madhu Lunawat, focuses on backing growth-stage, profitable businesses. Its previous investments include snack brand Haldiram Bhujiawala, cookware manufacturer Aniket Metals, and baby diaper maker Millennium Babycares.
“This investment reaffirms our commitment to empowering environmentally conscious businesses that drive positive change. As early advocates of sustainable mobility, we’ve been actively tracking and supporting eco-friendly initiatives since pre-pandemic times,” said Lunawat.
