SEDEMAC Bags $100 Mn In Primary & Secondary Funding

Deeptech Startup SEDEMAC Bags $100 Mn From Xponentia, A91 In A Mix Of Primary & Secondary Funding

SUMMARY

The fundraise comprised a primary transaction of about $9 Mn and a secondary portion of nearly $91 Mn

The deeptech startup will use the fresh capital to build a new manufacturing plant and expand its presence in India, the US and the EU

Founded in 2007, SEDEMAC builds motor controllers, battery management systems to cater to the two- and three- wheeler ICE and EV, generator and e-bike markets

Xponentia Capital Partners, A91 Partners, and 360 ONE Asset have acquired stakes in deeptech startup SEDEMAC Mechatronics via secondary transactions worth $91 Mn.

Overall, the size of the funding was $100 Mn, including a primary infusion of around $9 Mn into the startup at a valuation of $260 Mn, SEDEMAC Mechatronics said in a statement.

The secondary transaction also gave full exit to the company’s early investors, including Nexus Venture Partners, along with TR Capital and Montane Ventures.

The Pune-based startup will use the fresh capital to build a new manufacturing plant and expand its presence across India, the US and the EU, said Shashikanth Suryanarayan, founder of SEDEMAC.

Chetan Naik, fund manager and senior executive vice president at 360 ONE Asset, said, “SEDEMAC is well positioned to capitalize on the favourable trends driving increased electrification and the adoption of motor control technologies.”

Founded in 2007, SEDEMAC sells proprietary control technologies to original equipment manufacturers (OEMs) globally for critical applications in internal combustion engine (ICE) and electric vehicle (EV) mobility, generators and power tools segments.

The startup was founded by Suryanarayan, an assistant professor in mechanical engineering department at IIT-Bombay, and his students Pushkaraj Panse, Amit Dixit and Manish Sharma.

SEDEMAC claims it supplies millions of motor controllers annually from its Pune-based plants to cater to the two- and three-wheeler ICE and EV, generator and e-bike markets.

Its product offerings include sensorless integrated starter generators, electronic control units (ECUs) for fuel injection, smart ignition and voltage regulators among others.

The startup counts some of India’s biggest automakers such as Tata Motors, Mahindra Group, Ashok Leyland and TVS Motors among its clients.

In 2018, SEDEMAC raised an undisclosed amount of funding from Iron Pillar. Prior to that, in 2016, the startup bagged nearly $7.5 Mn from Infosys cofounder Nandan Nilekani and Nexus Venture Partners.