India Based EV Company Gayam Announces $50 Million Investment Commitment

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GMW’s clientele includes IKEA, Amazon, Uber, Flipkart (Walmart), Sokowatch, Grofers, BigBasket, Delhivery, and several others

Gayam Motor Works (GMW) has announced a $50Mn investment commitment from Luxemberg based Global Emerging Markets Global Yield LLC SCS (GEM) as the company plans to go public. The commitment will be made available on the first day of trading or in tranches to be drawn at the company’s option over a three-year period.

“This agreement with GEM is a validation of our position as a market leader in the affordable e-mobility space. We have indigenously designed a robust power-train with proprietary battery swapping technology. Some of the global automobile majors are exploring technology partnerships with us to co-develop affordable mobility solutions,” said GMW’s CEO Raja Gayam.

GMW’s clientele includes IKEA, Amazon, Uber, Flipkart (Walmart), Sokowatch, Grofers, BigBasket, Delhivery, and several others. The company has also set up battery swapping and charging networks at these customer warehouses and distribution centers.

The company in September 2020 had announced its expansion in UK and Europe. In fact, it is the largest exporter of electric 3Ws (or e-tuktuks) from India, with presence in UK, France, Portugal, Japan, Uganda, Nepal and Bangladesh. GMW’s SmartAuto is the first Indian e-3W to be European certified, and is also the first e-3W to be designed with a modular battery swapping system. The company by that time was already delivering electric three wheelers to clients in France, Portugal, Italy and London.

“COVID-19 has caused a steep increase in e-commerce penetration globally. E-commerce firms and fleet operators find small commercial EVs to be an affordable and smarter way of moving goods around, as last-mile delivery accounts for the largest portion (~41 per cent) of supply chain costs. Now, we look to help drive the industry’s inevitable electrification,” said GMW’s COO Sri Harsha Bavirisetty.

The combined value of 3Ws and 3W refueling markets is at $32Bn. Several developing countries, as per the company, have a high rate of usage of three-wheelers, which were traditionally powered by IC engines. These markets are now looking at electric 3Ws as the future of intra-city mobility.

GMW’s future plans also call for the production of electric 4W trucks to follow from next year, which will have longer range and larger volume. The vehicle will likely be designed with the same battery interface of their SmartAuto for swift battery swapping across multiple vehicle types. the electric three wheeler market size, as per a report by Fortune Business Insights, was $28.62 billion in 2019. It is projected to grow from $28.98 billion in 2020 to $32.65 billion in 2027 at a CAGR of 1.7 per cent during the forecast period.

Raja Gayam along with his brother Rahul Gayam and college mate Sri Harsha Bavirisetty had started Gayam Motor Works in 2011 in Hyderabad.

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