Blue Energy Motors, a startup company that makes LNG and electric trucks, is in discussions with prospective investors to raise $40-50 million after completing its initial financing round of $10 million.
FPT Industrial, a subsidiary of Italy’s Iveco Group, purchased a minority stake in the business in the initial round. Blue Energy’s technology partner has been FPT Industrial, which provides engines that operate on liquified natural gas. (LNG).
Blue Energy Motors CEO Anirudh Bhuwalka stated, “We intend to raise $40-50 million.” We have only recently begun discussions with prospective investors, investment bankers, venture capitalists, and private equity firms. We intend to begin the procedure this quarter and complete it the following quarter.”
While Bhuwalka declined to further comment on the FPT transaction, market sources say the company offloaded 4-5% stake, giving it a valuation of $225 million. “We are not focused on what value the business is going to get but on the capital the business needs,” Bhuwalka said.
Blue Energy has a 55-tonne truck manufacturing facility in Chakan, near Pune, with a capacity of 10,000 units per year. It claims to have gotten business orders from cement companies and is now looking to add steel manufacturing companies to its roster.
The firm plans to enter the electric truck market later this year with the launch of a heavy-duty truck. While truck manufacturers in India have shown off electric vehicles, Blue Energy’s heavy-duty electric tractor could be the first to be sold.
“The electric heavy-duty truck will be the short-haul solution, with a drive range of 500 km, while the LNG will be for long-haul operations of 1000 km or more.” “We want to build a 46-55 tonne electric truck,” Bhuwalka continued.
Iveco and FPT have collaborated with Nikola Corporation, a hydrogen-electric truck designer and manufacturer located in the United States. The Italian firms are also the world’s first to develop heavy-duty electric powertrains.
