Omega Seiki Mobility plans to raise $500 million

Electric vehicle company, Omega Seiki Mobility (OSM) plans to raise $500 million (Rs 3,905 crore) in the next five years. The funding will be raised in a mix of equity and debt.

Speaking to Express Mobility, Uday Narang, Founder & Chairman, Omega Seiki Mobility said that while the company aims to raise funds to expand its business, the idea is “not to dilute the majority stake. The funding will be $100 million (Rs 780 crore) in equity and $400 million (Rs 3,123 crore) in debt.”

The company will deploy $350 million (Rs 2,733 crore) for the EV business and $150 million (Rs 1,171 crore) in the component business.

It is interesting to note that on June 20, OSM inaugurated its first electric three-wheeler manufacturing plant in Pune, Maharashtra. The company would be investing around $25 million (Rs 195 crore) at the plant, which will be able to manufacture 500 vehicles per month. The Chakan plant is Omega Seiki’s fourth manufacturing plant in the country. The other three manufacturing facilities at Faridabad have a combined manufacturing capacity of 2,600 e-3Ws a month.

Narang says OSM is also in talks with various stakeholders to create an ecosystem to drive EV adoption and growth. Amongst its peers in the e-three-wheeler space, OSM currently offers its products with both fast-charging and battery swapping options. It counts the likes of Forsee PowerSun Mobility and Log9 Materials among others for its battery solutions.

When queried on if the company is profitable, Narang is quick to reply that while the company has not yet made a profit, it is “not in the business of burning money.” He says, the company posted a loss of just Rs 2 crore in the FY2022 and expects it to reach Rs 6 crore in FY2023, which is quite negligible in the EV space compared to the competition.

On the other hand, he wants to make OSM a serious player in the EV space right from two-wheelers, three-wheelers (passenger & cargo), four-wheelers (cargo), commercial vehicles, and even e-tractors. The idea is to be a full-fledged EV company catering to the various segments in the industry.

In terms of the order book, Narang claims that it has received over 25,000 bookings alone for the Stream electric autorickshaw from across the country. It is also planning to introduce the Stream City e-autorickshaw with a claimed range of around 157km soon. For the cargo e-three-wheeler, it has a robust order of more than 50,000 units from various partners.

“We are also looking to set up a Rs 200 crore fund for electric three-wheeler finance. The financing will be brand agnostic, which means customers will be able to buy e-three-wheelers not necessarily of the OSM brand,” added Narang.

At present, the company has a dealer network of more than 100 touchpoints, and the idea is to scale it up to 300 touchpoints by end-FY2023. 

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