Folks Motor Secures INR 100 Crore in Initial Close of INR 500 Crore EV Fund

Folks Motor has announced the launch of 'Folks Funds,' an ESG-focused Category II  Alternative Investment Fund (AIF) aimed at boosting the country’s electric vehicle (EV) supply chain and local manufacturing.

The fund has secured INR 100 crore in its first close and targets a total corpus of INR 500 crore by end-2025. Folks Funds is India’s first investment fund dedicated specifically to consolidating and scaling the EV supply chain, with a strong focus on sustainable and future-ready solutions.

It aims to aggregate demand for EV systems and components while also supporting companies working in powertrain development, energy storage, EMS, and system integration, all with the goal of achieving at least 50 percent domestic value addition, aligned with the government’s Make in India vision.

A major chunk of the fund will go toward developing 'The Blue IP', India’s first xEV-centric warehousing and industrial park, located in Sonipat, Haryana. This facility is envisioned as a hub for advanced manufacturing and logistics, providing essential infrastructure for India’s emerging EV ecosystem.

“We’re not just building infrastructure, we’re building ecosystems,” said Nikhil Anand Khurana, MD and CEO of Folks Motor. “Folks Funds is about enabling Atmanirbhar Bharat by supporting domestic innovation, job creation, and reducing dependency on imported EV components," he added.

The fund is also in active talks with Telangana and Karnataka governments to expand its investment footprint, recognising the states’ proactive roles in EV adoption and infrastructure development.

India’s EV sales topped 2 million units in 2024, up 25.4 percent year-on-year. However, localisation of critical components like motors and controllers still lags at 30-40 percent. Folks Funds aims to plug this gap and elevate India’s role in the global EV value chain.

Importantly, the fund will also channel investments into retrofitment technologies, offering a dual focus on green mobility and economic efficiency by extending the life of existing commercial vehicles and reducing operational costs.

With the EV sector expected to generate 5 million direct and 30 million indirect jobs by 2030, Folks Funds positions itself as more than a capital provider, it is a catalyst for sustainable growth, innovation, and strategic consolidation in India’s electric future.