Bengaluru-based electric vehicle startup, Oben Electric, has successfully raised INR 40 Cr ($4.88 Mn) in its latest Pre-Series A funding round, bringing the total raised in this round to INR 72 Cr ($8.78 Mn) through a combination of equity and debt. The funds will be deployed to scale production capacity at the company’s manufacturing facility and meet working capital requirements, supporting its vision to manufacture 100,000 units annually.
The funding round saw participation from Stride Ventures, the Indian Renewable Energy Development Agency (IREDA), and Mumbai Angels, alongside a number of high-net-worth individuals (HNIs). Existing investors, including the Kalvani Family Office, US India EV Angels, and We Founder Circle, also contributed to this round.
Accelerating Production and Expanding Distribution
With this fresh infusion of capital, Oben Electric plans to ramp up the production of its flagship product, the Oben Rorr electric motorcycle. The company aims to meet the growing demand by boosting its manufacturing output to 100,000 units per year. Additionally, the funds will support the expansion of Oben’s distribution network, ensuring wider availability of the Oben Rorr across key markets in India.
Founded in 2020 by Madhumita Agrawal, Dinkar Agarwal, and Sagar Thakkar, Oben Electric focuses on producing electric motorcycles. The Oben Rorr, priced at INR 1.49 Lakhs (ex-showroom), is their flagship model and boasts an impressive 95% component-level localization, making it eligible for a FAME-II subsidy of INR 60,000 per vehicle. This localization not only reduces costs but also supports India’s push for homegrown EV production.
Upcoming Deliveries and Customer Demand
Oben Electric is gearing up for the much-anticipated delivery of the Oben Rorr, with 21,000 pre-orders already in place. Deliveries are set to begin in the first week of July 2023, as the company works to meet its committed timelines.
Madhumita Agrawal, CEO of Oben Electric, highlighted the importance of this funding round in maintaining the delivery schedule. “The additional infusion of funds was raised after meticulously planning the delivery dates and to meet the existing and future customer demand for our product Oben Rorr. We are delighted that the infusion of funds will be used to meet our committed delivery timeline, set for the first week of July,” she said.
Advanced Features and Charging Infrastructure
The Oben Rorr is equipped with a 4.4 kWh battery, which can be fully charged in just two hours. In addition to producing high-performance electric motorcycles, Oben Electric has also developed an extensive network of over 12,000 charging stations across India, making it easier for users to charge their vehicles.
EV Market Growth and Investment Momentum
Oben Electric’s successful funding round comes amid a surge in electric vehicle adoption in India. In May 2023, EV registrations surpassed 1 Lakh per month, with companies like Ola Electric leading the charge. This upward trend is expected to continue despite the recent cut in FAME-II subsidies, which may temporarily slow the market.
The sustained investor interest in the EV segment is evident, with multiple electric vehicle companies attracting significant funding. Earlier this year, River, another EV manufacturer, raised $15 Mn, while Kabira Mobility secured $50 Mn from Qatar’s Al-Abdulla Group in March.
Looking Ahead: A Promising Future for Oben Electric
With the new funding in place and deliveries on track, Oben Electric is poised to become one of India’s leading EV manufacturers. As the demand for electric vehicles continues to grow, the company’s strong production capacity, high localization rate, and commitment to innovation position it as a key player in the evolving EV landscape.
Nandini Mansinghka, CEO of Mumbai Angels, commented on the significance of this funding round: “EV has emerged as one of the hottest sectors in the startup ecosystem. With this funding round, Oben moves one step further into becoming one of the brightest trailblazers in the space in India.”
