Omega Seiki Mobility (OSM) is all set to raise $40 million in a Series B round to fund its electric truck manufacturing plans.
Uday Narang, founder and chairman, OSM, said they will raise the funds in the next three to four months. It will be in two tranches, with the first tranche of $25 million and $15 million subsequently. The funds will be raised through long-term strategic partners and will not just be a financial investment, Narang said. It would be similar to the Series A capital raised recently.
Omega Seiki manufactures electric two-wheelers, three-wheelers and trucks. The company has its manufacturing base in Faridabad and at Chakan in Pune. The company will utilise the funds to build two electric truck plants in the country. The one-tonne e-truck will be manufactured in Pune and the 3.5-tonne e-truck in Faridabad, Narang said. The electric trucks are currently undergoing testing at ICAT and are awaiting approvals.
The one-tonne truck will have a 100-120 km range and speed of 55 mph and will come with competitive pricing in this price-sensitive product segment, Narang said. The company plans to launch the truck in September.
The one-tonne truck segment is a 500,000 units market in the country and around 30-40% of these trucks can be electrified. He expects a significant shift to electrification in this segment in the next two to three years. OSM will be competing with Tata Motors and Switch Mobility in this segment.
OSM is also considering a foray into the global market with its electric trucks and exploring possible bases in West Asia and ASEAN.
Omega Seiki recently raised undisclosed funds from Japanese company Exedy Corporation to advance electric mobility plans in India. The Osaka-headquartered Exedy Group is into auto components, construction machinery parts and agriculture vehicles. Exedy is collaborating with OSM on the development of electric vehicles, equipped with their proprietary high-efficiency electric drive units, which consist of motors and continuously variable transmissions (CVTs).
The company currently can make 12,000 electric three-wheelers and would be taking it up to 20,000 units. OSM ended FY24 with a turnover of `250 crore and turned Ebitda positive, Narang said. This was achieved in the fourth year of the company and is unheard of in the electric vehicle segment, where companies are bleeding money, he said. The company has achieved cumulative sales of 14,000 units of three-wheelers, 85% of which were cargo vehicles. The company plans to focus on the passenger vehicles this year and take its turnover to `450-500 crore in FY25 and turn PAT positive. This could pave the way to listing the company sometime in 2026 or 2027.
