TVS Motor increases stake in ION Mobility through Singapore subsidiary

India's TVS Motor Company announced it had increased its stake in Southeast Asian e-mobility player ION Mobility last week.

In a stock exchange filing, the company said, "We would like to inform you that TVS Motor (Singapore) Pte. Ltd. has now subscribed to an additional 1,820,326 Series AA Shares of Ion Mobility on 14th March 2024 and thereby ION Mobility has become an Associate of TVS Motor (Singapore) Pte Limited as well as the Company." 

The funds are to be paid in cash consideration, and the investment will take place in tranches, TVS Motor said. While the first tranche of $2.5 million was made on March 14, the balance $3 million was due before March 31 this year, the company said. On completion, TVS Motor (Singapore) Pte Ltd will have 25.64 percent shareholding in ION Mobility. 

In its disclosure, TVS Motor revealed that the additional investment was intended to "further enable TVS Motor Company Limited to further drive the premium electric ecosystem in South-east Asia."

TVS Motors first invested in Singapore-based ION Mobility in February last year, when it led ION's Series A funding round with an investment of $18.7 million (Rs 137.66 crore). The company had agreed to provide ION with ecosystem support to be successful in the electric two-wheeler space in Singapore and Indonesia, its core markets, as well as Vietnam.

Sudarshan Venu, Managing Director, TVS Motor Company had said at the time, "We are thrilled to partner with ION Mobility, a full-stack EV company with a strong team of engineers and technical base in Singapore, to drive the premium electric two-wheeler growth in the region."