Mumbai: India's only electric car manufacturer Reva Electric Car Company Pvt. Ltd. (RECC) has received an overseas investment of $20 million. Draper Fisher Jurveston (DFJ) and Global Environment Fund (GEF) led the investment round in support of RECC's global growth. Edelweiss Capital acted as exclusive financial advisor to Reva on the complete transaction.

The Bangalore-based RECC has an installed capacity of 6,000 electric cars per annum and employs 240. After seven years of R&D in developing a commercially viable electric car, the company commercialised its operations in June 2001 with India's first zero polluting electric vehicle.

Today it has 1,800 vehicles on the road and is also being test marketed in the US, Norway, Spain and other EU countries and holds 10 patents.
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This investment will help RECC to expand and consolidate its position as one of the pioneers in automobiles fuelled by electricity rather than fossil fuels that drive today's internal combustion engines.

One of the fastest growing electric car companies, RECC's Reva cars enjoy a favourable brand equity among environment friendly passenger cars. Reva will use this investment to expand its business by increasing its production capacity, developing newer models and further enhancing its international and domestic distribution.

Speaking on the investment, Dr S K Maini, chairman, RECC, said, "We are very pleased to have received this significant investment from GEF and DFJ and look forward to their experience in helping us to become global leader in the electric vehicle market. This investment has come at a very opportune time and we will certainly use it to leverage our global brand recognition

"Since 1990, Global Environment Fund has reviewed scores of business plans from electric car companies proposing to displace the internal combustion engine," says H. Jeffery Leonard, president and CEO, GEF, who has joined RECC's board of directors.

GEF manages private equity funds totalling approximately $850 million. Since 1994, GEF has undertaken private investments in India focused in the energy and environmental sectors through private equity transactions in companies engaged in renewable energy generation (wind power and pumped storage), natural gas production and distribution, environmental pollution control and water treatment.

RECC is the first global investment in an electric vehicle company by GEF.

The existing model of the EEC-certified Reva is currently is available in, apart from India, in the UK, Italy, Malta, Sri Lanka, Cyprus and Greece.

According to Leonard, "The company's strategy to deliver affordable transportation for short-distance urban commuters appeals to us because it does not seek to compete with global automotive companies on the open road. We believe that REVA has established itself as a leader in the City Car market that is emerging as an important niche in the automotive market, especially in Europe."

Tim Draper, founder and managing director, Draper Fisher Jurveston, has also joined RECC's Board of Directors.

According to Draper, "We are proud to invest in REVA. We have been very impressed with how they have grown their business throughout India and into other countries. We are also pleased with the strong brand presence REVA enjoys today."

Draper says that the Reva electric car is the ideal vehicle as it addresses the need for a cleaner, more efficient and environment friendly transport for people. "We believe that with our investment we can help Reva become a major global player in the electric car market," says Draper and adds, "The lines are finally crossing where electric cars have the same price and performance of equivalent gas cars. Reva is the low cost breakthrough electric car we have all been waiting for."

The existing model of the EEC-certified REVA is currently available in India and marketed in U.K. Italy, Malta, Sri Lanka Cyprus and Greece. There are over 600 REVA cars on the road in London, the largest electric vehicle market for REVA and has been recognized as the most energy efficient electric vehicle by PowerShift of UK. With over 1800 vehicles on the road, Reva is also being test marketed in Norway, Spain, Japan, USA, Ireland, Australia and other European countries.

Started in 1994 as a joint venture between the Maini Group and AEV LLC, California, USA, to manufacture environment-friendly and cost-effective electric vehicles, the Maini Group also produces battery-operated materials handling equipment and off-road electric vehicles.