EKA Mobility Raises INR 500 Cr To Boost EV Manufacturing Capacity

EV manufacturer EKA Mobility has raised a strategic investment of INR 500 Cr (about $57 Mn) from National Investment and Infrastructure Fund Limited’s (NIIF) India-Japan Fund. 

The Pune-based startup intends to deploy the fresh capital to bolster its manufacturing capacity, advance its R&D, improve its supply chain infrastructure, and enhance marketing efforts aimed at both domestic and international markets. 

“This investment comes at a crucial time as we expand operations, strengthen our R&D, and accelerate the adoption of electric mobility across India,” EKA Mobility’s founder Sudhir Mehta said.

The investment also aligns with India Japan Fund’s objective to invest in the climate segment and further accelerate investments in the India-Japan corridor, it said in a statement. 

“Our investment in EKA Mobility continues to reflect our confidence in India’s electric mobility potential and the capability of homegrown OEMs to drive meaningful change in the market,” Krishna Kumar, partner and fund head, IJF said. 

Founded in 2022 by Mehta, EKA Mobility is an EV manufacturer and a subsidiary of Pinnacle Industries. The startup manufactures electric buses and small electric commercial vehicles (eSCVs). It is part of India’s PLI scheme, and has partnerships with Mitsui & Co. and VDL Group.

Its portfolio of zero-emission vehicles spans electric buses (7m, 9m, and 12m variants), intercity coaches, 3-wheeler passenger and cargo vehicles, heavy-duty trucks (55T and 7T) and small commercial vehicles in the 1.5T, 2.5T, and 3.5T categories. 

EKA Mobility claims that it has confirmed orders for over 3,300 electric buses as part of state government procurements, municipal corporation contracts, and private commercial fleets.

Its e-bus manufacturing unit in Koregaon Bhima in Pune has a capacity of building 200–250 electric buses per month and its aims to double this capacity to 500 units per month by the end of financial year 2025-26 (FY26). EKA Mobility also claims to have an order book of 3,000 e-buses and 1,000 SCVs. 

The development comes a few months after EKA Mobility raised INR 200 Cr in a funding round from Enam Holdings to expand its manufacturing capacity. The startup earlier said that it will utilise funds to expand its existing e-bus manufacturing in Pune and set up a third manufacturing facility in Pithampur, Madhya Pradesh. 

As per EKA Mobility’s standalone financial statements for the financial year 2023-24 (FY24) sourced from Tofler, its operating revenue jumped almost 12X to INR 53 Cr from INR 2.90 Cr in the previous fiscal year. 

India’s EV ecosystem is growing on the back of consumer consciousness and strong investor support. The country’s EV market which is projected to become a $132 Bn opportunity by 2030 has bagged $3.7 Bn in funding since 2014 and is home to more than 120 funded EV startups.