EV Startup Oben Electric Raises INR 85 Cr To Scale Distribution Network

Electric bike maker Oben Electric has raised INR 85 Cr (about $10 Mn) in its pre-Series B funding round from Indian-American family offices based in the US, largely with manufacturing backgrounds, and some existing investors. Raj K Soin, Musa Dakri and Ramesh Bhutada were among the new investors.

The startup will use the capital to scale its distribution network and for new product launches. Cofounder and CEO Madhumita Agrawal told Inc42 that Oben Electric plans to have 150 exclusive stores with service centres by March 2026. The EV maker currently operates over 85 exclusive stores across 18 states.

Over the next two years, the startup is targeting close to 500 stores. Agrawal said the focus is on going deeper in existing states rather than spreading too thin geographically.

The second objective of the fundraise is to achieve COGS break-even by the end of FY26. 

On the product launch front, Oben Electric has already announced its upcoming O100 motorcycle platform to enter the 100cc equivalent motorcycle segment. The startup said that the development of the platform is on track, with sales expected to begin next year.

Founded in 2020 by Madhumita Agrawal, Dinkar Agrawal and Sagar Thakkar, Oben Electric currently sells three variants of its Rorr electric motorcycle. It competes with the likes of Ola Electric, Revolt Motors and legacy manufacturers like Bajaj Auto, TVS Motor, among others. 

In June, Oben Electric raised an additional INR 50 Cr Series A funding to close the round at INR 100 Cr. Overall, the startup has raised INR 285 Cr to date from investors like Helios Holdings, Sharda family office, Ambis Holding, among others. It said that the pre-Series B round will be followed by a larger Series B raise, which it expects to be in the range of $20 Mn to $40 Mn.

Source: Inc42 Datalabs

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Inside Oben Electric’s Strategy To Expand Market Share

As per VAHAN data, Oben Electric’s vehicle sales rose from 630 units in 2024 to 2,828 units in 2025 (till November), marking a 348.89% jump. 

The growth came on the back of expansion of the startup’s retail footprint and its clear focus on motorcycles. 

The CEO said that motorcycles are often primary vehicles and, in many cases, livelihood vehicles in India. As a result, buyers place higher importance on reliability, durability, service support and long-term ownership comfort.

She said that automotive buying behaviour in India is different from consumer electronics or FMCG. While price still matters, it is not the only factor. “A breakdown can mean loss of daily income for users, making reliability and service access critical,” she said. 

This thinking shaped Oben Electric’s expansion strategy. In its early phase, the startup operated its own stores and service centres in cities such as Bengaluru, Delhi and Pune. These company-run outlets helped it set up processes on the ground and understand service operations directly.

As it expanded, Oben Electric moved to a dealer-led model but with strict conditions. The startup onboards only those dealers who commit to setting up an exclusive service centre alongside the showroom. 

Oben Electric does not rely on third-party service providers. Agrawal said the company prefers to take full responsibility for service rather than “outsource accountability”.

She added that the startup is comfortable limiting its footprint to fewer states if it allows it to build strong operations with high service quality in each market.

In terms of geography, North India has emerged as an early growth driver and continues to perform well. Southern markets, especially Bengaluru, took longer to scale but are now seeing demand comparable to Delhi, the CEO said. 

Oben Electric’s revenue in FY25 stood at around $3 Mn (about INR 25 Cr) and it expects this number to jump to $12 Mn (about INR 100 Cr) in the ongoing financial year on the back of doubling of vehicle sales.

Notably, Oben Electric manufactures its motorcycles and key EV components in-house, including LFP battery packs.