Omega Seiki Mobility Plans $40 Million Funding for Electric Trucks

Key Highlights:

• OSM will raise $40 million in Series B funding for electric truck manufacturing.
• Funds will be used to build electric truck plants in Pune and Faridabad.
• OSM's electric trucks, currently in testing, target the 500,000 units Indian market.
• OSM secured funds from Exedy Corporation for developing high-efficiency electric vehicles.
• OSM aims to expand globally, achieved ₹250 crore turnover in FY24, and targets ₹450-500 crore in FY25.

Omega Seiki Mobility (OSM) intends to raise $40 million in a Series B investment to fuel its electric truck production goals.

According to Uday Narang, founder and chairman of OSM, the cash will be raised through long-term strategic partners rather than as a financial investment. It would be similar to the recent Series A funding round.

Uday Narang stated that they plan to raise the funding within the next three to four months. It will be divided into two sections, with the first being $25 million and the second $15 million. 

Omega Seiki makes electric two-wheelers, three-wheelers, and trucks. The company has manufacturing facilities in Faridabad and Chakan in Pune.

The electric trucks are currently being tested at ICAT and awaiting permission. According to Narang, the one-tonne truck will have a range of 100-120 kilometers, a top speed of 55 mph, and competitive pricing in this price-sensitive product market. The truck will be available in September, according to business plans.

The funding will be used to develop two electric trucks facilities across the country. According to Narang, the one-tonne e-truck will be made in Pune, while the 3.5-tonne e-truck will be built in Faridabad. 

The one-tonne truck segment accounts for 500,000 units in the country, with approximately 30-40% of these trucks electrified. He anticipates a big transition toward electrification in this category over the next two to three years. OSM will compete with Tata Motors and Switch Mobility in this segment.

OSM is also considering expanding into the global market with its electric trucks, with potential bases in West Asia and ASEAN. Omega Seiki has obtained undisclosed financing from Japanese company Exedy Corporation to expand its electric transportation goals in India.

Exedy is working with OSM on the development of electric vehicles powered by their unique high-efficiency electric drive systems, which include motors and constantly variable transmissions. Exedy Group, headquartered in Osaka, manufactures automotive components, construction machinery parts, and agricultural vehicles. 

The company is currently capable of producing 12,000 electric three-wheelers and plans to expand to 20,000 units. OSM finished FY24 with a turnover of '250 crore and a positive Ebitda, according to Narang. The company has sold 14,000 three-wheelers in total, with cargo vehicles accounting for 85%.

The business intends to focus on passenger vehicles this year, increasing its revenue to '450-500 crore in FY25 and turning PAT positive. This might pave the path for the company's listing in 2026 or 2027.

This was accomplished in the company's fourth year and is unprecedented in the electric vehicle market, where companies are losing money, he said. Omega Seiki recently raised secret cash from the Japanese corporation Exedy Corporation to improve electric mobility. 

Also Read: New Subsidy Scheme for Electric Trucks and Buses Likely to be Introduced

CMV360 Says

OSM's big goals to grow its electric truck production is a good news for India's electric vehicle industry. Getting lots of money and working with partners from other countries shows OSM wants to be a big part of the market. They're thinking about selling trucks in India and maybe other countries too.