New Delhi, May 19 -- Hybrid electric retrofit car company Folks Motor has announced the first close of its Folks Funds, a Category II alternative investment fund (AIF), which has a target corpus of Rs 500 crore ($58.5 million).
The fund has already secured Rs 100 crore in its first close and aims to reach the full target by the end of 2025.
The fund will focus on investments in India's electric vehicle (EV) supply chain and local manufacturing capabilities. The company claims that it is India's first ESG-focused investment fund dedicated to the EV supply chain, aiming to drive consolidation and demand aggregation for EV systems and components.
A significant portion of the fund will be allocated to developing "The Blue IP", a warehousing and industrial park in Sonipat, Haryana, designed to support the EV ecosystem by providing essential manufacturing and logistics infrastructure.
The fund's investments will focus on key areas such as powertrain systems, energy storage, electronic manufacturing services (EMS), and system integration. It is committed to achieving a minimum of 50% domestic value addition, aligning with government policies promoting local manufacturing.
Folks Motor said it is also in discussions with the Telangana and Karnataka state governments-which have been proactive in promoting EV adoption and infrastructure development--to expand its investment footprint.
India's EV market is experiencing rapid growth, with sales surpassing 2 million units in 2024, marking a 25.4% year-on-year growth. However, localization of critical components like motors and controllers remains at just 30-40%, indicating a significant opportunity for domestic manufacturing.
"Our vision with Folks Funds is to redefine India's position in the global EV supply chain. With the Blue IP and our strategic partnerships, we are not just building infrastructure-we are building future-ready ecosystems for sustainable manufacturing," said Nikhil Anand Khurana, managing director and chief executive officer of Folks Motor.
"Besides this, the fund will also focus on retro-fitment technologies, which are critical to extending the lifespan of existing vehicles and reducing operational costs for commercial fleets. This dual approach supports both green mobility and economic efficiency," Khurana added.
Published by HT Digital Content Services with permission from VC Circle.