Pune-based electric two-wheeler manufacturer BGauss has successfully raised ₹161 crore in a new funding round led by Bharat Value Fund (BVF). This latest investment comprises both primary and secondary capital, marking a significant milestone for the company as it seeks to expand its market presence and enhance its offerings. This funding follows an earlier ₹52 crore round raised in April 2022, led by Darshan Patel, founder of Vini Cosmetics Pvt. Ltd.
Purpose of the Funding
The newly acquired funds are set to bolster BGauss’s ambitions of scaling up its operations both in India and internationally. The company plans to invest in infrastructure development, intensify marketing initiatives, and enhance its in-house research and development (R&D) capabilities. This focus on R&D aligns with its goal to roll out cutting-edge electric two-wheelers that integrate advanced AI technology, fast charging, Internet of Things (IoT) features, and user-centric designs.
Market Presence and Growth Plans
Founded in 2020 by Hemant Kabra, who is also a key promoter of RR Global, BGauss has positioned itself as an innovator in the electric vehicle (EV) sector. In June 2024, the company launched its flagship model, the RUV 350, equipped with a 3.5-kilowatt motor, a peak torque of 165 Nm, and a top speed of 75 km/h.
BGauss currently serves a customer base of approximately 45,000 and operates through 120 dealerships. It aims to expand this network to 500 dealerships and establish over 1,000 service touchpoints across India. With an annual manufacturing capacity of 100,000 units, the company is prepared to meet rising demand and plans to introduce two new products this year. These efforts signal BGauss’s intent to become one of India’s top five electric two-wheeler manufacturers.
Financial Performance and Market Position
Despite posting a net loss of ₹49.6 crore in FY24—nearly double the previous year’s loss—the company achieved a revenue of ₹178 crore, a significant increase from ₹110 crore in FY23. BGauss projects revenue of around ₹250 crore for the current fiscal year.
The Indian electric two-wheeler market is intensely competitive, with key players such as Ola Electric, Bajaj Auto, TVS Motor Company, and Ather Energy. However, BGauss’s strategic focus on innovation, customer-centric solutions, and sustainable mobility positions it as a promising contender in this rapidly evolving landscape.
Collaborating for a Sustainable Future
Bharat Value Fund’s Chief Investment Officer, Madhu Lunawat, emphasized the fund’s commitment to supporting eco-friendly initiatives. “As early advocates of sustainable mobility, we have been actively tracking and supporting green innovations since pre-pandemic times. With this transaction, both teams shall work together towards creating a greener tomorrow,” Lunawat stated.
The funding and planned expansions mark a pivotal moment for BGauss as it seeks to redefine its trajectory in the electric two-wheeler segment, leveraging its technological advancements and strategic vision to accelerate growth and contribute to a sustainable future.
