EKA Mobility, a prominent electric vehicle (EV) manufacturer and an Original Equipment Manufacturer (OEM) in Pune, has managed to acquire a major strategic capital of ₹500 Crore (approximately $57 Million). The India-Japan Fund of the National Investment and Infrastructure Fund Limited (NIIF) contributed to this capital infusion on a large scale. The strategic action will significantly enhance the standing of the Pune-based startup in the India-based electric mobility environment that is rapidly developing.
Market expansion and diverse portfolio
The nature of the investment is in complete compliance with the objectives of the India-Japan Fund, i.e., making capital investments in the climate segment and also making to go further and stepping up investments in the well-established India-Japan corridor. This capital investment is an indicator of a high level of investor confidence in the business idea of EKA Mobility and its ability to play a central role in the transition of the country to sustainable transportation.
EKA Mobility management has identified a definite and multifaceted plan on how this huge fresh capital can be deployed. The main goals include the strengthening of the manufacturing capacity of the company, the active promotion of its Research and Development (R&D) activities, and the basic enhancement of its supply chain structure. In addition, a small percentage of the money will be used in improving marketing activities, which will have the dual effect of consolidating the brand in the domestic Indian market as well as facilitating a strategic market penetration into the international markets.
EKA Mobility is a company that manufactures specialty EVs and was established in 2022 by Sudhir Mehta, and is a subsidiary of the bigger Pinnacle Industries. In addition, the company is included in the Production Linked Incentive (PLI) scheme developed by the government in India to promote domestic production. EKA Mobility has also developed important international relationships, such as collaborating with Mitsui and Co. and VDL Group, giving the company considerable credibility and technical skills.
The varied range of zero-emission vehicles offered by the company covers different categories to address various logistical and passenger requirements. It offers electric buses in 7, 9, and 12-meter variants along with intercity coaches. Within the commercial vehicle category, the portfolio is also diverse and includes 3-wheeler passenger and cargo vehicles, heavy-duty trucks (55T and 7T), and small commercial vehicles (SCVs) in 1.5T, 2.5T, and 3.5T models. This entire product portfolio will put EKA Mobility in a position to address several segments of the commercial vehicle market, including last-mile connectivity and heavy-duty logistics.
Operational capacity and financial growth
EKA Mobility is expanding its operational capacity rapidly to cater to the growing demand for electric commercial cars. The company has an e-bus manufacturing unit at Koregaon Bhima in Pune. This is an operational plant that can construct 200 to 250 electric buses in one month. The new investment would directly help the company to go big in its plan to increase this capacity, through which the company plans to reach a production rate of 500 units per month by the end of the financial year 2025-26 (FY26).
A robust pipeline of demand supports the company in achieving its strong operational objectives. EKA Mobility boasts of having secured orders on more than 3,300 electric buses, being acquired via a combination of contracts with state governments, agreements with municipal corporations, and deals with commercial fleets of their own. The company claims a total order book of 3,000 e-buses and 1,000 SCVs, and this means that there is a stable base of future demand for its products in the next few years. This high-order book confirms that the market has accepted the vehicles of EKA Mobility and that the revenue generating owes to the company with a clear direction as it expands its manufacturing capacity.
The latest equity capital increase comes after a time marked by significant financial growth and past funding efforts. EKA Mobility had just 3 months before the strategic investment by NIIF been able to raise ₹200 Crore in a funding round by Enam Holdings. This initial round of capital was invested in capacity addition, namely, financing the expansion of the available e-bus assembly plant in Pune and the proposed establishment of a third e-bus assembly plant in Pithampur, Madhya Pradesh.
This continued investor demand is an indication of the ever-growing financial health of the company. As per the standalone financial statements of EKA Mobility, under the financial year 2023-24 (FY24), the company registered an extraordinary growth in operating revenue. It has registered a growth of nearly 12X, increasing to ₹53 crore as compared to ₹2.90 crore reported in the last financial year. This financial success is achieved against the backdrop of an exploding national industry; the current EV market in India, which now enjoys the backing of investor confidence and increasing consumer awareness, is predicted to evolve into a $132 billion prospect by 2030. The sector has since raised over $3.7 billion in funds collectively and can now boast over 120 funded EV startups as a growing and fast-maturing ecosystem, in which EKA Mobility can grow.
Conclusion
EKA Mobility has raised ₹500 crore by the NIIF India-Japan Fund is a milestone that firmly positions the company on a fast track of growth. The capital will play a vital role in expanding its production capacity, increasing research and development, as well as implementing strategic market penetration and expansion across the globe, all to achieve a significant order book. The investment is not only a confirmation of the strategic vision of the company, but it also supports the cross-functional work of the global funds and the Indian OEMs to propel sustainable mobility solutions.
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