eBikeGo’s unit acquires 40% stake in Varcas Automobiles
The acquisition is expected to boost production and expand eBikeGo’s market reach in the electric vehicle sector.
eBikeGo’s subsidiary Vajram Electric Ltd on Thursday acquired a 40% stake in Hyderabad-based electric vehicle (EV) manufacturer Varcas Automobiles.
The acquisition is expected to create new synergies for Vajram that will help the company to scale up production and meet the rising demand for electric two-wheelers in India.
Vajram is also targeting to capitalise on Varcas’ manufacturing capabilities and address the rising demand for EVs in Tier II and Tier III cities.
“This strategic partnership with Varcas Automobiles Pvt Ltd. will provide us with the operational scale and technological expertise needed to meet the growing demand for electric two-wheelers. Together, we will drive greater innovation and bring affordable, high-quality electric vehicles to a larger audience, contributing to India's green mobility revolution,” said Dr Irfan Khan, Chairman of Vajram Electric.
eBikeGo’s Vajram Electric has delivered over 25,000 electric two-wheelers to date and has generated a revenue of Rs 110 crore, the company said in a statement.
“Varcas Automobiles is dedicated to revolutionising the way we think about transportation in India. Our mission is to deliver high-quality, reliable, and affordable electric vehicles that meet the diverse needs of our customers while contributing to a cleaner environment. Finally found a perfect partner who is in harmony with our thoughts and mission, so together aim to lead the EV market in innovation and customer satisfaction,” said Ram Vemireddy, Founder and CEO of Varcas Automobiles.
This is not the first time eBikeGo’s EV expansion plans has involved an acquisition. In 2021, the two-wheeler rental platform acquired the rights to manufacture ‘Velocipedo’, the smart electric three-wheeler from Spanish automotive company Torrot in India which marked its entry into the luxury EV space.
The same year, it also acquired Kustard Technologies, an UI/UX design studio and app development company for $2 million to help build fleet management systems.
Edited by Jyoti Narayan