Oben Electric, a Bengaluru-based electric vehicle (EV) startup, raised $4.88 million in an extended Pre-Series A from investors such as Stride Ventures, Indian Renewable Energy Development Agency (IREDA), Mumbai Angels, and several high-net-worth individuals (HNIs). Additionally, existing investors including the Kalvani Family Office, US India EV Angels, and We Founder Circle also took part in the round.
The fresh capital infusion will be utilized to scale up Oben Electric’s production capacity to 100,000 units per year at its manufacturing facility in Bengaluru. It will also support the company in meeting the working capital requirements for expanding its distribution network.
Established in 2020 by Madhumita Agrawal, Dinkar Agarwal, and Sagar Thakkar, Oben Electric specializes in manufacturing electric motorcycles. The company’s flagship product, the Oben Rorr, carries an ex-showroom price of INR 1.49 lakhs. With a component-level localization of 95%, the Oben Rorr qualifies for a FAME-II incentive of INR 60,000 per vehicle.
Oben Electric has already received 21,000 pre-orders for the Oben Rorr and plans to commence deliveries in the first week of July 2023. The startup claims that the Rorr’s 4.4 kWh battery can fully charge in just two hours and highlights its extensive network of over 12,000 charging stations.
Nandini Mansinghka, CEO of Mumbai Angels, commented on the funding round, stating that Oben Electric is positioning itself as a trailblazer in the EV space in India, which has witnessed strong growth in EV adoption recently.
While the Indian EV market experienced a surge in registrations, with over 100,000 EV registrations per month in May 2023, the reduction of FAME-II subsidies by the government last month may lead to a temporary slowdown in the market. Nonetheless, investor interest in the EV segment remains robust.
Other EV startups in India have also been successful in raising funds. River, a two-wheeler EV maker, secured $15 million earlier this month, while Goa-based electric mobility startup Kabira Mobility raised $50 million in its Series A funding round in March. Ola Electric, in the process of constructing its gigafactory in Tamil Nadu, is currently in talks with major investors for a mega funding round of up to $300 million.
