Bengaluru-based electric two-wheeler startup Ultraviolette Automotive said it is open to licensing its battery technology as it seeks to diversify revenue beyond vehicle sales. The move comes as the Qualcomm- and TVS Motor-backed company aims to build a higher-margin income stream to support expansion in India and Europe.
“A little down the line, we should probably look at other revenue streams from offshoots from the technology side,” CEO Narayan Subramaniam told Reuters. “We have gotten interest from EV manufacturers, companies that make space tech equipment to even performance hydroplanes. But for us currently, with the bandwidth that we have, our laser-sharp focus is on building our presence and product portfolio.”
Ultraviolette, which launched its X47 electric motorcycle, positions its bikes at the premium end of the market, targeting buyers willing to pay for performance-oriented models and advanced features. The startup faces the capital-intensive realities of EV production, including factory build-outs and battery costs, and licensing could provide additional funds to expand manufacturing and product offerings.
Industry experts note that pursuing alternative revenue streams can be a double-edged sword, potentially diverting focus from scaling core EV sales. Similar strategies have been employed by U.S. EV startups such as Rivian and Lucid, which have explored licensing and technology supply arrangements to boost profitability.
Ultraviolette recently raised $21 million in a funding round led by Japan’s TDK Ventures, with participation from Zoho Corporation and Lingotto, underscoring investor confidence in its growth strategy.
Source: Reuters