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Licensing tech could offer high-profit margins for

Ultraviolette

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Ultraviolette aims to expand in India, Europe with new X47

motorcycle

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Licensing could unlock capital for scaling manufacturing

and the

product portfolio

By Akash Sriram

BENGALURU, Sept 23 (Reuters) - Electric two-wheeler

startup Ultraviolette Automotive said on Tuesday it is open to

licensing its battery technology, as the Qualcomm ( QCOM ) and

TVS Motor-backed company seeks to build a new,

higher-margin revenue stream.

EV startups face heavy cash burn from factory build-outs

and the high cost of batteries and components.

Licensing could provide capital to expand manufacturing and

the product portfolio, giving companies more financial

flexibility, industry experts say.

"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."

Pursuing new business lines can divert focus and resources

from scaling core EV sales and manufacturing, a critical phase

for startups still establishing market share, industry experts

say.

In the United States, Rivian and Lucid

have also sought to boost revenue by licensing or supplying

their EV technology, underscoring how capital-intensive startups

are looking beyond vehicle sales for profitability.

The Bengaluru, India-based company on Tuesday launched the

X47 electric motorcycle, aiming to attract a broader swath of

consumers and expand in India and Europe.

Ultraviolette positions its bikes at the premium end against

domestic rivals such as Ather Energy and Ola Electric

, targeting buyers willing to pay more for

performance-oriented models and advanced features.

By contrast, Ather CEO Tarun Mehta told Reuters last month

the company is not looking to license its technology.

Ultraviolette raised $21 million last month in a round led

by Japan's TDK Ventures, with participation from Zoho

Corporation and Lingotto.