Ultraviolette to Invest $70-100 Million for More Products, Capacity 

Ultraviolette Automotive is set to invest $70-$100 million (Rs 600-870 crore) over the next couple of years as the electric two-wheeler startup looks to expand its product portfolio with a diverse range of scooters and motorcycles, and significantly increase its manufacturing capacity to support future sales.

“This [new products and capacity expansion] involves investments in the range of $70 million to $100 million for the next couple of years,” Ultraviolette co-founder and Chief Technology Officer Niraj Rajmohan said.

The Bengaluru-based startup has been recognized for its high-performance electric motorcycles, holding the record for India's fastest electric motorcycle brand. The automaker, however, has announced its plans to expand its product portfolio to include electric scooters in addition to motorcycles across diverse use cases and price points.

Ultraviolette is eyeing a portfolio of 14 products over a period of 36 months on five platforms - F Series, S-Series, L Series, X Series and B Series. Currently, it has two performance motorycles under F Series - F77 Mach 2 and F77 SuperStreet, priced over Rs 3 lakh. 

The first scooter model Tesseract will come under the S Series, which is for scooters, while the light motorcycle Shockwave, an adventure street model, will be under the L series, which is for light-weight motorcycles. The X and B series is likely to have crossover or cruiser models.

Ultraviolette's sales volumes have been very limited due to its focus on a niche market of performance enthusiasts with its F Series models. Currently, the company's pilot plant near Electronic City in Bengaluru has a manufacturing capacity of 30,000 units per annum.

To meet anticipated demand from its upcoming higher-volume models, Rajmohan said the company would require a higher production capacity and is in discussions regarding this. Also, the automaker is projecting its annual sales volume to reach at least 100,000 units within the next three to four years.

Though Ultraviolette did not confirm any plans for setting up a new facility in Bengaluru, Rajmohan noted that the company is exploring the options for a greenfield expansion.

Ultraviolette has invested $60 million in its products till now, including Tesseract and Shockwave, as well as in its manufacturing capacity at the Bengaluru facility. 

According to the data from Tracxn, Ultraviolette has raised a total funding of $76.9M over 13 rounds since 2016. The latest funding round was a Series D round in December last year where the company raised $15.3 million. TVS Motor, Zoho, Qualcomm, Zoho, Exor are among the few investors in the company.

Rajmohan noted the Ultraviolette noted that the company is talks for growth capital, without disclosing the exact quantum or route of fresh fund raising. 

“These things are a constant process. This is a very capital-intensive industry and any automotive company in this space is in talks. Because it is not just about one investing in products, it is also about investing in growth if you have an advantage. Today, we have an advantage. We are ahead in terms of technology and several capabilities that we have. Now, it is time to double down. So now we are looking at and we are in discussions for growth capital,” he said.

Meanwhile, on the possibility of joint manufacturing with TVS Motor, Rajmohan said, “There are possible synergies with TVS. These have always been on the table. I think at the right time and place, when it makes sense for both parties, we will take it up."