Gurgaon-based electric mobility start-up Okinawa Autotech is in advanced talks with multiple private equity (PE) firms to raise $100 million (around Rs 800 crore). Jeetender Sharma, managing director (MD) of Okinawa, told the Economic Times (ET) that the deal seems to be signed shortly.
The company is aiming to utilise the fund to develop its third manufacturing facility, which is expected to have a one million unit capacity to develop new products. Currently, it is having a production capacity to build 3,00,00 units annually.
According to a report by ET, Okinawa is aiming to invest Rs 800-1000 crore in the next three years to expand its sales units to one million in a year. It also wants to expand its sales outlets to 700 in the coming years from the current 540.
Addressing the advanced talks to raise funds, Sharma told ET, "We will close a tranche of $100 million shortly. The capital will be utilised to develop products, enhance the technology of the powertrain, set up capacity in-house for manufacturing powertrains and to operationalise fresh production capacity at our third facility in Rajasthan."
The electric two-wheeler start-up bagged Rs 800 crore in operating revenues in the financial year (FY) 2022. It witnessed a 7x growth from Rs 118 crore in FY21. It also sold 1,00,000 units in the fiscal year 2022. Its profit also jumped to Rs 89.5 crore in FY22 from Rs 5.5 crore in FY21.