Electric motorcycle manufacturer Oben Electric is expected to raise Rs 428 crore-Rs 513 crore in the series B funding round in 2025.
Founded in 2020, Oben Electric operates a 3.5-acre manufacturing facility in Bengaluru with an annual production capacity of 1 lakh units. The plant currently manufactures the company’s two electric motorcycle models — the Rorr and the Rorr EZ ranging from Rs 89,999 to Rs 1,49,999.
In the financial year 2025, the company sold 1,500 units and is targeting sales of 12,000 units by 2025-26.
The Bengaluru-based startup is pursuing a growth strategy, with a significant emphasis on in-house research and development. So far, it has invested close to Rs 100 crore in R&D.
Currently, the company has a retail footprint of over 30 stores, a number it aims to expand to 150 by 2025-26. To strengthen its supply chain and support future expansion, the company is likely to set up another manufacturing facility.
“We’re well-positioned to manage the demand across India with our 1 lakh unit capacity in Bangalore. The current setup caters not just to the south but even parts of central India. But we’ll eventually need a second facility expanding strategically based on logistics and supply chain needs in the north…That’s something we see happening in a few years,” said Madhumita Agrawal, founder and Chief Executive Officer, Oben Electric.
“Whatever we build there would be equal to or even bigger than our current capacity,” she added.
In its series A funding in January this year, the company raised Rs 50 crore from various investors such as Ambis Holding US, Kuberan Ventures, Karimjee Group from Africa, Mission Vertical (a US-based VC), the Sanjeev Saraf (Polyplex) Family Office, Pravek Kalp Family Office, and others.
As the company prepares to scale its manufacturing footprint, it is also refining its financial strategy to ensure steady growth.
The company has moved beyond raising funds from venture capitalists and is now focused on securing private equity investment with an emphasis on sustainable business model and profitability.
It believes that while the trend of loss-making startups going public has gained momentum, it is important to first focus on rigorous R&D and then look for opportunities to raise funds.
Adding to this, Founder, Chief Technology Officer, and Chief Operating Officer, Oben Electric, Dinkar Agrawal said, “We’re looking at raising around $50–$60 million (Rs 428 crore-Rs 513 crore) to get to EBITDA positivity. The idea is to first reach profitability, then go for the pre-IPO round in a few years.” The company did not reveal the month for the series B funding.
From EV Maker To Component Supplier
With 99% localization, Oben Electric manufactures its own lithium-iron-phosphate (LFP) batteries and motors. This creates a foundation for a new business focused on component supply in India and the globe.
“The way we’ve designed our motor ranging from 6 kilowatt to 12 kilowatt it can power both two-wheelers and three-wheelers. So tomorrow, we can approach a three-wheeler manufacturer and offer a plug-and-play solution…Ultimately, each of these business verticals— motors, batteries, and software can evolve into standalone billion-dollar opportunities,” Dinkar said.