EKA Mobility Gets Second Tranche Of INR 200 Cr From Japan’s Mitsui

Pune-based electric vehicle (EV) manufacturer EKA Mobility has received a second tranche of investment of INR 200 Cr from Japanese trading and investment company Mitsui and Co. Ltd as part of a INR 850 Cr deal signed last year.

EKA will use the fresh capital to scale up its manufacturing operations, expand its product portfolio, and meet its capex and working capital needs, the startup said in a statement. 

A chunk of the fresh proceeds will also be earmarked for market expansion and supply chain optimisation.

Founded in 2022 by Dr. Sudhir Mehta, EKA Mobility is an automotive and technology startup that manufactures ebuses and electric small commercial vehicles (eSVCs). It claims that its sustainable solutions are structured using 100% recyclable materials, thereby reducing the carbon footprint. 

In December last year, EKA entered into a partnership with Mitsui and Dutch technology and manufacturing company VDL Groep for making joint investments of $100 Mn (about INR 850 Cr) in phases, equity, and technology cooperation to create a leading global OEM in India.

Earlier this year, Mitsui executed the maiden tranche of investment in EKA, which the latter used to set up a research and development centre for commercial EVs, new product development and boost exports.

Commenting on the second tranche of investment, Mehta said, “The continued investment support will enable us to accelerate our growth trajectory, bring innovative EV solutions to market faster, and further our mission to create a sustainable and green transportation ecosystem.”

EKA is among the 20 applicants approved under the government’s production linked incentive (PLI) scheme for the automobile and auto component industry.

The Centre introduced the policy in 2021 with a total outlay of INR 25,938 Cr.

EKA claims to have an order book of 1,000+ electric buses and 5,000+ electric light commercial vehicles. Amid growing demand for EKA buses in New Delhi and Greater Mumbai, the company expects a surge in electric bus orders in the coming days.

As per an Inc42 report, India’s EV market is expected to reach a size of $110.74 Bn by 2029. Ola Electric, Ather Energy, Altigreen Propulsion Labs, BluSmart, and Exponent Energy are among the notable homegrown startups in the space.

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