Electric vehicles maker Omega Seiki is looking to raise USD 50-75 million capital in Series A funding round for new products, R&D for truck segment and critical components manufacturing, among others, a top company official said.
Omega Seiki Mobility (OSM) is tapping investors who take a long-term view of the business to mop up these funds, which are expected to be in place by early next year, the company’s founder and Chairman Uday Narang said. “We are contemplating Series A Funding of around USD 50-75 million. We believe this will be enough for us to prepare for a mega IPO next year,” Narang told PTI.
“For the same, we will dilute minority stake, depending on the investor. We will go ahead with like-minded partners that have a long-term, 5 – 10 years, vision on this segment,” he said. Narang said the company is looking to onboard investors with long-term patient capital or a strategic investor that believes in the vision of green energy and sustainability. “We have initiated discussions with international funds that want to be part of India’s growth story. Primarily, someone who has a long-term view on green energy and sustainability,” he added.
Part of the proposed USD 50-75 million funding should come either in the later part of this year, or depending on the festival season, early next year, he said. “We’ll be using these funds in the R&D activities for our trucks division, critical components manufacturing, expansion of our factories for three-wheelers and introduction of newer technology-based products,” Narang stated. OSM already has a capacity to churn out 2,500 three-wheelers per month.
He said the company is expecting a 15-25 per cent rate of return in the EV business over a period of time. According to Narang, OSM is also looking to raise capital separately for its African and European businesses through international funding. “The company has earmarked an investment of USD 40-million for these two regions initially and started investing its own capital,” Narang added.