New Delhi: Okinawa Autotech, a startup focused on electric two-wheelers, is reportedly in advanced talks with multiple private equity firms to raise $100 million (around Rs 800 crore) for its third manufacturing plant. The company aims to utilize the funds to develop a new facility with a one million unit capacity to produce new products, which is a significant increase from its current production capacity of 300,000 units per year. The deal is expected to be signed soon, according to Jeetender Sharma, the managing director of Okinawa.
Okinawa’s plan is to invest Rs 800-1000 crore in the next three years to expand its sales to one million units per year, as well as increase its sales outlets from 540 to 700 in the coming years, as reported by the Economic Times (ET). Sharma also stated that the capital raised would be used to develop products, enhance powertrain technology, set up in-house manufacturing capacity for powertrains, and operationalize the fresh production capacity at the third facility in Rajasthan.
In the financial year 2022, Okinawa Autotech recorded Rs 800 crore in operating revenues, up from Rs 118 crore in FY21, demonstrating a 7x growth. It also sold 100,000 units in FY22 and saw its profit increase from Rs 5.5 crore in FY21 to Rs 89.5 crore in FY22.
The demand for electric two-wheelers has been growing in India due to the rising cost of fuel and increasing environmental concerns. The government’s push towards electric mobility has also encouraged companies like Okinawa Autotech to expand their production capacity and develop new products. With the help of the funding, the company plans to introduce new electric two-wheeler models and improve its powertrain technology to meet the demand for affordable and eco-friendly transportation options.
In conclusion, the funding raised by Okinawa Autotech will help the company expand its production capacity and introduce new electric two-wheeler models to meet the growing demand for eco-friendly transportation options in India. The company’s focus on enhancing powertrain technology will also help it stay ahead of the competition and develop more advanced products in the future.