The new fundraising will be used for network expansion, which includes the opening of 50 new retail outlets and the introduction of two new electric motorcycles in the 110-150 cc ICE equivalent segment.
27 May 2024 | 3770 Views | By Amit Vijay M
Oben Electric, the Bengaluru-based EV firm intends to raise approximately USD 20 million (Rs 166 crore) over the next two quarters of fiscal year 25, after recently securing nearly USD 14 million (Rs 116 crore) in debt and equity.
The company has previously raised funds from Stride Ventures and ...
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Oben Electric, the Bengaluru-based EV firm intends to raise approximately USD 20 million (Rs 166 crore) over the next two quarters of fiscal year 25, after recently securing nearly USD 14 million (Rs 116 crore) in debt and equity.
The company has previously raised funds from Stride Ventures and the Indian Renewable Energy Development Agency (IREDA), Mumbai Angels (an IIFL Company), We Founders Circle, Kalvani Family Office, and US India EV Angels, and expects the new funding to come from existing and new investors.
Top company officials told Autocar Professional that the new fundraising will be used for network expansion, which includes the opening of 50 new retail outlets and the introduction of two new electric motorcycles in the 110-150 cc ICE equivalent segment.
Oben Electric has also announced the start of retail operations in Pune, Kerala, and Delhi, with approximately 8 company-owned and dealer stores ready to roll out its existing product line today onwards.
Sharing the expansion plans, Madhumita Agrawal, Founder and CEO of Oben Electric said, "We are solidifying our position as an emerging leader in India's electric vehicle industry with the entry into the vibrant markets of Delhi, Pune, and Kerala, alongside our continued growth in Bengaluru."
Of the 50 dealerships it plans to open over the next year in 12 Indian cities, the company intends to open at least 10 company-owned stores in each metropolis at prominent locations, with the remainder being a dealer-led expansion, Agrawal told Autocar Professional.
Oben aims to focus on the 150 cc category. "We have no plans to enter the 150 cc and above ICE category because we expect brisk electric motorcycle sales around the 1,50,000 price point."
The firm had received close to 20,000 bookings during the launch period which it now plans to start servicing from its expanded dealer locations.
"Our pricing may be marginally higher than an ICE motorcycle, but the low cost of ownership is helping Oben, as we have received nearly twice as many inquiries from the initial booking period until now," Agrawal said.
"Oben is gearing up to maximise production capacity to one lakh units in the next two-three years, backed by a resurgence in retail growth and expanding our product portfolio and keeping an eye on exports," Agrawal added, stating that funds raised previously have already been deployed for in-house development of batteries, motors, and other critical components.
According to two-wheeler electric vehicle OEM founders, consumers have become increasingly interested in electric motorcycles with the prospect of an electric motorcycle being a first-choice vehicle becoming a part of the consumer's consideration in India when deciding on a new motorbike purchase.
According to SIAM data, premium motorcycle sales with engine capacities ranging from 125 to 150 cc increased by 15%, while 150 to 250 cc models increased by 22% of the 16.5 million vehicles sold in fiscal year 24.
Such strong sales have boosted the confidence of electric motorcycle OEMs, which sold nearly 10,000 units in FY24 and are expected to more than triple this year, according to industry analysts tracking the market.
Other electric motorcycle OEMs, such as Tork Motors and the upcoming Matter Area, plan to operate in Oben's 125-150 cc category, with bikes priced between Rs 150,000 and Rs 2,00,000.
Rattan India-backed Revolt Motors, the market leader in electric motorcycles, has also announced a newly optimised pricing structure for its popular RV400 and RV400 BRZ models, starting from Rs. 1,49,950 ex-showroom.
Another new entrant in this space is Okaya's Ferrato Disruptor electric motorcycle, which was recently launched for Rs 1.60 lakh (ex-showroom, excluding state subsidies) and will begin deliveries on August 2.
The Oben Rorr which is also priced at around Rs 1,50,000 has a 10 kW IPMSM motor designed to accelerate (0-40 km/h in 3 seconds) and reach a top speed of 100 km/h.
The company claims to have a certified range of 187 kilometers (IDC), which it says is the highest among electric two-wheelers in India in this category.