- Kinetic Green's losses surged 11X to Rs 77 crore in FY24 due to higher advertising and employee benefit expenses, while revenue dropped 3percent.
- Despite strong backing and a solid founder legacy, the company’s 1percent market share limits growth, with plans to strengthen performance and valuations in FY25.
EV manufacturer Kinetic Green, backed by Greater Pacific Capital, faced significant financial strain in FY24, with losses increasing 11X due to higher advertising and employee benefit expenses. The company’s revenue from operations fell three percent, dropping to Rs. 291 crores in FY24 from Rs. 301 crore in FY23.
Kinetic Green manufactures electric vehicles, including scooters, rickshaws, cycles, and buggies. In FY24, its sole revenue source was electric vehicle sales. Procurement costs, which accounted for 62 percent of total expenditures, decreased by 5.4 percent to Rs. 229 crores from Rs. 242 crore in FY23.
Kinetic Green's advertising costs surged 8.2X to Rs 58 crore in FY24, while employee benefits increased by 52.4percent. Additionally, finance, transportation, legal, and other overheads contributed to a 19percent rise in total expenditures, reaching Rs 369 crore, up from Rs 310 crore in FY23.
This increase in expenses led to an 11X widening of losses, reaching Rs 77 crore in FY24 compared to Rs. seven crore in FY23. The company’s EBITDA margins were -20.55 percent, and it spent Rs. 1.27 to earn every rupee of operating revenue. Current assets stood at Rs. 169 crore by FY24’s end.
Kinetic Green has raised a total of $27 million in funding, with $25 million coming from Greater Pacific Capital, its largest external stakeholder holding 5.6 percent. Co-founders Sulajia Firodia Motwani and Ritesh Ramesh Mantri retain 91.7 percent of the company. This high stakeholding and their deep experience in the two and three-wheeler industry suggest a long-term strategic plan, which has attracted quality investor backing.
However, despite these advantages, Kinetic Green’s FY24 numbers show limited growth, with a market share of just 1percent, preventing it from entering the top 10. The company plans further investment raises and is focused on strengthening its performance and valuations. While it faces stiff competition in the electric two-wheeler space, Kinetic Green’s founder legacy provides a solid foundation for future growth, and it remains closely watched by investors as it aims to expand in FY25.
