Switch Mobility closing in on $200 million fund raise, says Dheeraj Hinduja

Other News 24 January 2022 12:15 (UTC +04:00)

Switch Mobility, the electrical automobile arm of India’s second-largest truck maker Ashok Leyland, is in the ultimate phases of elevating $200 million {dollars} at a valuation of over $1.4 to $1.8 billion to fund its capex plans. The deal announcement is predicted inside 8-12 weeks.

Nearly 70 traders from the US, Europe and the Middle East, together with the likes of Blackrock, Macquarie, Oman Investment Fund, Canadian Pension Fund and several other inexperienced funds have been approached, in line with a number of individuals in the know.

The fundraise will meet the funding requirement of over $500 million in the subsequent 3-5 years for Hinduja Group EV endeavours. The cash can be used to create plant capability and new merchandise and for market entry worldwide for each Ashok Leyland and Switch Mobility.

Dheeraj Hinduja, chairman of Ashok Leyland, in an unique interview with ET, confirmed that Switch Mobility is finalizing the fundraise and it’s more likely to be concluded inside the subsequent few months. Hinduja, nevertheless, declined to share the names of the traders or the valuation the corporate is in search of.

An e-mail despatched to Blackrock, Macquarie and Oman Investment Fund didn’t elicit any response until the press time. The spokesperson for Canada Pension Plan Investment Board declined to remark.

To be certain, the group has been on a fund-raising path for over the past 12-18 months, however in the latest previous the joy across the electrical business automobile house has considerably corrected. The three world biggies like Nikola, Rivian and Arrival have seen their valuation crash by 35-70% and therefore Switch has not been in a position to safe proper valuations.