Folks Motor has secured the first ₹100 crore for its newly launched electric vehicle-focused fund, “Folks Funds,” aiming to raise a total corpus of ₹500 crore by the end of 2025. The fund, classified as an Alternative Investment Fund (AIF) Category II, is India’s first ESG-centric vehicle dedicated exclusively to strengthening the domestic EV supply chain and manufacturing ecosystem.
The fund will allocate a significant portion of its capital to building “The Blue IP,” India’s first industrial park focused entirely on electric mobility. Located in Sonipat, Haryana, this xEV-specific warehousing and industrial zone will serve as a hub for EV component manufacturing and logistics operations. It is designed to catalyze infrastructure development aligned with India’s green mobility ambitions.
Folks Motor plans to channel strategic investments into critical EV value chain segments, including powertrains, energy storage systems, electronic manufacturing services (EMS), and system integration. The focus will remain on enabling at least 50% local value addition, in line with the Indian government’s Make in India and Atmanirbhar Bharat initiatives.
Nikhil Anand Khurana, Managing Director and CEO of Folks Motor, highlighted the fund’s long-term vision: “With Folks Funds, we aim to redefine India’s global EV supply chain role. By building The Blue IP and supporting innovative manufacturing, we’re enabling sustainable industrial growth. Our dual approach includes backing retrofitment technologies to extend the lifecycle of existing vehicles and reduce commercial fleet costs—this is green mobility with economic sense.”
The fund’s launch coincides with India’s EV market surpassing 2 million units sold in 2024—a 25.4% growth compared to the previous year. Despite this progress, localization levels for key EV components like motors and controllers remain at only 30-40%. Folks Motor sees this as a high-potential opportunity to scale domestic manufacturing and reduce import dependence.
In addition to Haryana, Folks Motor is in active discussions with state governments in Telangana and Karnataka to explore further investment opportunities. Both states have emerged as key players in India’s EV ecosystem, offering favorable policies and infrastructure for industry growth.
The EV industry in India is projected to create 5 million direct and 30 million indirect jobs by 2030. Folks Funds is positioned to contribute to this surge by investing in the companies and technologies that will define the next phase of India’s mobility revolution. With a clear focus on supply chain resilience, retrofitment innovation, and manufacturing scale, the fund aims to attract both domestic and global interest in India-made EV components.
