BGauss, an electric two-wheeler manufacturer, has managed to raise ₹161 crore, or about $18.6 million, from Bharat Value Fund (BVF). This is a major achievement for the Pune-based startup. It will help BGauss in its growth strategy as it looks to expand its presence both in India and internationally.
Funding Overview
The funding raised by BGauss from BVF, a mid-market growth investment vehicle managed by Pantomath Capital Management. It is more than double the funding raised in BGauss’s earlier round in April 2022, where it had raised ₹52 crore led by Darshan Patel, founder of Vini Cosmetics. The latest funds will be used to enhance capital expenditures, marketing, and the in-house research and development capabilities for new product launches.
BGauss, a company by Hemant Kabra, co-founder and managing director, commented on the fundings, stating, “This investment will drive us to accelerate our mission in being one of the top five EV two-wheeler players and bringing cut-throat and reliable electric scooters to the market.”
They would use the funds to increase its dealership network, expanding from 120 locations to more than 500 across India to touch over 1,000 touchpoints within the country.
Product Innovations and Market Strategy By BGauss
BGauss has already made strides in product innovation with the introduction of its latest model, the RUV 350. Launched in June 2024, this electric scooter features a powerful 3.5-kilowatt motor, delivering a peak torque of 165 Nm and achieving a top speed of 75 km/h. The RUV 350 exemplifies BGauss’s commitment to integrating advanced technology with user-friendly design. The company currently caters to about 45,000 customers and plans to expand its manufacturing capacity from 100,000 units per year. The Indian electric two-wheeler market is becoming increasingly competitive with players such as Ola Electric, Bajaj Auto, and TVS Motor Company; BGauss is strategically positioning itself to capture more market share.
Industry Responses to BGauss
Industry experts have welcomed the funding. Madhu Lunawat, co-founder of Pantomath Capital Management and managing partner at BVF, said, “This investment reiterates our commitment to enabling environmentally conscious businesses that drive positive change.”
The competitive landscape of electric two-wheelers in India is heating up. While the established brands face challenges, including Ola Electric’s recent struggle with regulatory issues and customer complaints, BGauss’s proactive approach in expanding its product line and dealership network may position it better against these competitors.
ELCTRIK Speaks
With such high funding, the company and its ambitious plan to expand the product line by launching new innovation will try to further consolidate the company’s leadership in India’s electric mobility industry. The strategies the company takes on in upgrading manufacturing capabilities, along with new launches, show BGauss’s vision of fulfilling an increasing demand in the country for transport with sustainability as the main attribute.
