Pure EV Gears Up for INR 3,000 Cr IPO, Aiming for Second Listing
Pure EV, one of the well-known electric vehicle makers based in Hyderabad, is all geared up for the much-awaited high jump in the Indian booming EV market. The company has announced an initial public offering for 2025 to turn out to be the second EV maker in India going for a public issue.
On the monetary front, the company has been on strong wickets, reporting operational profitability for two consecutive years. Its growth trajectory is impressive—a turnover increase of 20 times to INR 3,000 crore in the next four years. This ambitious target underlines its confidence in fully exploiting the demand that is gathering momentum for electric vehicles in India.
Pure EV Targets IPO Amidst Financial Woes
Pure EV has been one of the biggest movers in the Indian electric vehicle market, reporting operational profitability for the last three years without the help of any government subsidy. However, its recent financial performance raises some questions over the IPO ambition of the company.
Though The company has shown financial resilience, the latest financial disclosure, which is for FY23, shows revenue decline and a loss of INR 9.32 crore. Its revenue from operations declined to INR 131.28 crore in FY23 from INR 225.98 crore in FY22, a fall of about 42%. Despite these setbacks, Pure EV remains very bullish on its future and is striving hard to continue increasing its product offerings and its market share.
Pure EV’s expansion plans and IPO ambitions
The company is expanding operations and building capability in every direction to achieve ambitious growth plans. In a move of this nature, the state-of-the-art facility for EV and battery manufacturing was set up in Telangana over 1 lakh square feet. This substantial investment by Pure EV underlines the commitment of Pure EV towards manufacturing excellence and innovation.
Besides expanding its manufacturing facilities, Pure EV has collaborated with UK-based engineering company PDSL to develop solid-state battery technology. This advanced technology can introduce a paradigm shift in the electric vehicle sector due to its higher energy density and improved safety. Pure EV is showing positive signs in R&D in order to be at the edge in technology related to the EV sector.
Pure EV is all set to go with IPO plans despite intense competition
Pure EV has completed its most recent Series A1 funding round at US$ 25 million and is preparing for its public market launch. The large funding follow-on is raised after an earlier funding round of US$8 million, which had led Bennett Coleman and Company Limited and Hindustan Times Media Ventures.
It is competing in a high-momentum Indian electric vehicle market dominated by Ola Electric, with a commanding 34% market share. Yet, while the company has achieved decent growth, the sale of 291 vehicles in August is just 0.3% of the market. The only way it can perform better and be reasonably at par with other players like Ola Electric would be through its IPO, which must turn out to be successful.