Troubled Tork Motors looking at stake sale to revive operations
Tork Motors is looking to sell a stake to raise capital in a desperate bid to revive operations crippled by a sharp cut in government subsidies on electric vehicle sales and an overall funding squeeze.
The Pune-based electric motorcycle startup--backed by Ratan Tata, Bharat Forge and Ola's Bhavish Aggarwal--has sent out buyout proposals to two-wheeler companies including Kinetic Green, Hero MotoCorp, and TVS Motor Company for the potential deal, said people familiar with the matter. These companies said they are studying the proposals and would decide shortly.
The people cited above didn't disclose the amount of stake Tork Motors plans to sell. The company was last valued at $45 million, according to The Kredible and Entrackr.
Reduction of subsidies under the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme and a dearth of venture and private equity funding have become major challenges for Tork Motors and several other electric two-wheeler makers in recent months, say industry experts.
«Kinetic Green is expanding its electric two-wheeler business and has been looking at possible investment opportunities. However, we have not taken any view or decision regarding potential investment in Tork Motors business,» said a company executive.
Hero MotoCorp, Ola, TVS Motor and Bharat Forge didn't respond to ET's queries. Tork Motors CEO Kapil Shelke did not respond to calls or messages.
The second edition of the FAME scheme was modified by the Ministry of Heavy Industries in June 2023 where the
