TDK Invests $21M in Ultraviolette to Expand Electric Motorcycle Production

Ultraviolette Electric Motorcycles Accelerates Global Expansion with $21 Million Funding

Just two months after entering ten European nations, Indian electric motorcycle manufacturer Ultraviolette is significantly accelerating its international growth plans. This expansion is supported by a recent $21 million equity investment round, spearheaded by TDK Corporation’s venture capital arm.

Expanding Global Reach and Product Portfolio

The 9-year-old company intends to quadruple its presence in Europe. Furthermore, Ultraviolette is targeting entry into new motorcycle markets in Latin America and Southeast Asia.

By early 2027, the startup aims to broaden its product range to encompass a total of 14 distinct models.

Founders and Inspiration

Ultraviolette was founded by two childhood friends, Narayan Subramaniam, the CEO, and Niraj Rajmohan, the CTO. Their combined expertise spans mechanical engineering, automotive design, computer science, and electronics.

The founders drew considerable inspiration from Tesla, seeking to revolutionize the mid-segment two-wheeler market with electric power.

Early Market Conditions and Differentiation

Ultraviolette emerged during a period when India’s electric two-wheeler sector was largely dominated by low-speed vehicles. These primarily served commercial and utility purposes.

Initially, the market saw an influx of inexpensive Chinese imports, followed by a surge of domestic startups and, subsequently, established manufacturers joining the electric vehicle space.

Rather than simply competing in this crowded market, Ultraviolette’s founders focused on developing electric motorcycles capable of matching the performance of 150cc to 800cc internal combustion engine sports bikes.

A Vision for Exciting Electric Two-Wheelers

“Our core question was: what would it take to make electric two-wheelers truly exciting?” explained Rajmohan in a recent interview.

Development and Key Specifications

From its inception in 2016, it took approximately four years for Ultraviolette to unveil its first prototype in 2019. The company iterated through seven design versions before finalizing the F77 model.

The commercially released version boasts a range exceeding 186 miles, a top speed of 96 miles per hour, a peak power output of 30kW, and torque of up to 100 newton-meters, utilizing a fixed battery pack.

New Models and Pricing

Ultraviolette has also introduced the lightweight Shock Wave motorcycle and the Tesseract scooter. The Tesseract features front and rear radar and cameras, enabling assisted driving and blindspot detection.

The scooter is priced at ₹145,000 ($1,650), while the motorcycles range from ₹175,000 ($2,000) to $10,000 (ex-showroom).

Advanced Technology and Connectivity

Ultraviolette’s vehicles are equipped with eSIM connectivity and utilize a proprietary diagnostics system for predictive maintenance.

This system can identify even minor issues, such as the need for chain lubrication, and provides consumers with real-time insights via a dedicated mobile application.

Manufacturing and Workforce

The company operates a manufacturing and assembly facility in Bengaluru’s Electronics City, with a production capacity of 30,000 units annually.

Ultraviolette maintains complete in-house control over its operations, encompassing embedded software development, battery management systems, motor controllers, and battery manufacturing. The company employs approximately 500 individuals, including 200 dedicated to corporate functions and research & development.

Learning from Tesla’s Success

Ultraviolette’s business strategy was partially influenced by insights gained from Tesla owners. The co-founders engaged with early Tesla Model S adopters in the U.S. to understand the factors that differentiated the vehicle from other electric cars.

“Owning a Tesla was seen as a progressive lifestyle choice,” Rajmohan shared with TechCrunch.

Global Branding and European Certification

The founders aimed to instill a similar sentiment in Ultraviolette’s branding and design, positioning it as a global company from the outset.

The name “Ultraviolette” was chosen because the pronunciation of “violet” is consistent across over 30 European languages, and “ultra” conveys a sense of innovation. The company proactively pursued European certification for all its vehicles prior to market entry.

Strategic Expansion Beyond India

This approach contrasts with other Indian electric two-wheeler manufacturers that initially focused on domestic demand.

While India represents nearly 40% of global motorcycle sales, the vast majority are powered by internal combustion engines.

Domestic Market Challenges and Opportunities

Expanding beyond India is strategically advantageous, given the relatively low adoption rate of electric vehicles within the country – currently at 7.66%, compared to a global average of 16.48% (according to NITI Aayog).

Although India aims for 30% EV penetration by 2030, achieving this target may prove challenging based on current progress.

India’s market is also highly price-sensitive, with two-wheelers often serving as essential and affordable transportation. Selling high-end models at scale domestically may present initial hurdles for Ultraviolette.

“We are focused on segments that have more universal appeal,” Rajmohan concluded.

Future Expansion Plans

Ultraviolette is focused on increasing its production capabilities. The company intends to boost the capacity of its Bengaluru facility to a maximum of 60,000 units.

Furthermore, a larger production location will be added to facilitate scaling to approximately 300,000 units by the beginning of the following year.

Retail Network Growth

Currently, Ultraviolette maintains a network of 20 stores across 20 cities in India. A significant expansion is planned, aiming for around 100 stores by March of next year.

Approximately 50 of these new stores – targeting one per city – are anticipated to launch during the festive season later in the current year.

International Market Entry

Rajmohan communicated to TechCrunch that the company is actively pursuing expansion into the European market, where it already has established relationships with 40 dealers.

“The coming year will be pivotal for scaling operations within Europe,” he stated.

Pilot programs are also scheduled to commence in Latin America and Southeast Asia next year. Subsequent market entries will include the U.S. and Japan.

Sales and Revenue Projections

To date, Ultraviolette has successfully sold over 3,000 motorcycles within India. The company projects sales to reach up to 10,000 units later this year.

A revenue target exceeding $50 million has been set for the conclusion of the current financial year.

Investment Details

The recent funding round included participation from existing investors, Zoho Corporation and Lingotto (formerly Exor Capital).

Total funding raised to date amounts to approximately $75 million. Key investors also include Qualcomm Ventures, Exor, and TVS Motor.

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