ninety-one: Cycle maker Ninety One raises Rs 225 crore from A91 Partners, existing investors
A91 Partners, founded by former executives of Sequoia Capital, has invested Rs 160 crore, while existing investors Fireside Ventures, Avaana Capital and
The capital put in Rs 65 crore.
The company will use the funds to fuel its aggressive growth plans, which include establishing two manufacturing plants in Gujarat and expanding into European and North American markets, Chopra said.
Founded in 2015 by brothers Sachin and Vishal Chopra, Ninety One claims to be one of India’s fastest growing active lifestyle and sustainable mobility brands, with a retail network of over 1,000 stores. in 500 towns and villages.
“We are delighted to support Ninety One as a pioneering new age Indian active lifestyle brand that can truly deliver world class products to global consumers,” said VT Bharadwaj, General Partner at A91 Partners. “Ninety One has outperformed the competition in the bicycle industry. and electric cycles, asserting itself as a strong brand with extensive distribution and strong manufacturing capabilities.
Following Series A, Bharadwaj of A91 Partners, Vinay Singh of Fireside Ventures and Sandeep Singhal of Avaana Capital will join the company’s board of directors.
Sachin Chopra claimed that Ninety One is “better than existing brands” in the market.
“What Dyson has done for vacuum cleaners, we aspire to do for the bicycle segment,” he told ET. “Our bikes are very sophisticated products. We are offering a $ 1,000 experience for $ 150. We decided to enter the segment, focusing on the need to offer better products.
He said the company has a turnover of Rs 25 crore per month, selling 25,000 cycles and bicycles each month. Almost 75% of sales come from Tier II-IV cities, and only 25% come from the top eight metropolises, he said.
Currently, the company has a manufacturing plant in Ahmedabad, producing 10,000 bikes per month, and works with two outsourced factories in Ludhiana and Sri Lanka.
“We plan to create two more facilities – in Ahmedabad and Baroda – each with a production capacity of 50,000 cycles per month,” Chopra said. “The idea is to have 70% of the production in-house.
Last year, the company launched its India-made Meraki electric bike at a retail price of $ 400, or around Rs 30,000.
“Meraki is completely designed and manufactured in India, and we have several patents for it. We also plan to increase the production of electric bicycles, ”said Chopra.
Currently, the bicycle market in India is valued at around Rs 12,000 crore per year, selling 23-25 million cycles per year. The main brands in the segment include Hero Cycles, TI Cycles (BSA, Hercules), Avon and B-Twin.
Ninety One last year raised an undisclosed amount from mid-sized private equity firm Avaana Capital and Snapdeal founders Rohit Bansal and Kunal Bahl’s Titan Capital. He had also secured seed funding from Fireside Ventures.
A91 Partners, launched by VT Bharadwaj, Gautam Mago and Abhay Pandey in 2018, marked the definitive close of its second fund at $ 550 million in November.