"PURE EV to Raise ₹400 Crore for Factory Expansion and Growth"

Hyderabad-based PuR Energy Pvt Ltd, the maker of PURE EV electric scooters and motorcycles, is set to raise ₹400 crore through a combination of equity and debt. The funds will support the company’s ambitious expansion plans, including the establishment of a new greenfield factory, dealership network growth, and scaling of both domestic and export volumes over the next three years.

Currently operating with an annual production capacity of 50,000 units in Telangana, PURE EV has proposed a 35-acre facility to four states—Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka. The new plant will be developed in two phases, increasing production capacity to 2 lakh units in the first phase and eventually reaching 5 lakh units within five years. Founder and Managing Director Nishanth Dongari stated that the project would be funded with 70% equity and 30% debt.

To date, the company has raised ₹250 crore—₹170 crore through equity and ₹80 crore via bank financing. Promoters currently hold an 85% stake in the company.

Dealership Expansion and Market Growth

PURE EV is ramping up its dealership network, increasing outlets from 70 to 120-130 by November, aligning with the Diwali season. The expansion is expected to boost sales by 15-25% at existing outlets while driving additional growth through new locations. The company has seen rising consumer confidence and demand for its products.

Technological Innovations and New Product Launches

PURE EV is focusing on premium offerings with the introduction of its X Platform 3.0. Key features include a "Thrill Mode" for enhanced torque without compromising mileage, next-gen cloud AI for real-time updates, and a smart dashboard with over 100 features. New variants of its ePluto, G Max, and eTryst X models are slated for launch soon.

Additionally, the company has eliminated warranty conditions for battery and powertrain issues, leveraging predictive cloud technology for zero downtime. Safety advancements, including nano-phase change materials for thermal safety, have resulted in no safety incidents in the past 18 months.

Profitability Amid Policy Shifts

Despite the reduction of government subsidies, PURE EV remains confident in its profitability, with no plans for significant price adjustments. “We are well-positioned to capitalise on evolving market conditions without altering our pricing strategy,” Dongari stated.

Future Growth Plans

PURE EV sold 14,000 units in 2024 and is targeting 21,000-22,000 units in 2025, with plans to scale to 40,000-50,000 units by 2026. While scooters, led by the flagship E-Pluto series, currently account for 85% of sales, electric motorcycles are growing and expected to play a larger role in the future.

Export Market Expansion

PURE EV has made inroads into international markets, exporting 1,500 vehicles to Nepal, Bhutan, and Dubai. In partnership with a Middle Eastern distributor, the company launched the Arva Electric brand. By FY28, it aims to export 50,000 electric motorcycles annually, focusing on regions like Africa, Latin America, Southeast Asia, and the Middle East, where motorcycles are in high demand.

This ₹400 crore fundraising initiative positions PURE EV as a key player in the growing electric vehicle market, reinforcing its commitment to innovation, sustainability, and global expansion.

HBL