Mitsui & Co (Mitsui), a global trading and investment company, has executed a second tranche investment in the electric vehicle company EKA Pinnacle Mobility Solutions.
In December 2023, EKA, Mitsui, and VDL Groep entered into a strategic long-term partnership that included joint investments of $100 million (Rs 850 crore) in phases, equity and technology cooperation. Mitsui’s investments are structured in three tranches of Rs 200 crore each.
This strategic infusion of capital will be directed towards capital expenditures and working capital, supporting EKA Mobility’s expansion in the EV sector, said Sudhir Mehta, founder of EKA Mobility. “This tranche also establishes an attractive valuation benchmark for the company,” he added. “The continued investment support will enable us to accelerate our growth trajectory and bring innovative EV solutions to market faster,” Mehta said.
Earlier this year, Mitsui invested its maiden tranche in EKA, which led the company to establish one of the largest R&D centers in the country for electric commercial vehicles (e-CVs), new product development, and expanding its export footprints. The second tranche will support EKA Mobility’s manufacturing capabilities, accelerate new product development, expand market reach, and provide working capital. “The investment will strengthen the company’s financial base to support day-to-day operations, supply chain optimisation and market expansion initiatives,” he said. It is also expected to create 1,000 jobs.
Under the cooperation, EKA Mobility will receive strategic investments from Mitsui, as well as technological support and equity partnership from VDL Groep, a leading Dutch technology and manufacturing company. VDL Bus & Coach, a subsidiary of VDL Groep and a prominent player in Europe’s electric buses and coaches market, will support EKA Mobility by transferring technology to produce electric buses in India for the Indian market.
EKA is developing 7, 9, and 12-meter electric buses, intercity coaches, and electric light commercial vehicles. EKA’s order book has grown to 1,000 electric buses and 5,000 electric light commercial vehicles. The company expects a surge in electric bus orders in the coming months and is well-positioned to capture and fulfill them.
