Kabira Mobility, an EV start-up that sells KM3000 and KM4000 electric bikes, announced that it has secured a $50 million investment, which is about Rs 413 crore, from its strategic investor, Al-Abdulla Group (Qatar) at an undisclosed valuation. The Goa-based company revealed that the amount raised will be deployed towards enhancing its output at its current facility and setting up its greenfield facility in Uttar Pradesh. The companies, however, did not share the exact details of the deal.
The homegrown electric two-wheeler maker plans to ramp up the production capacity of its electric bikes, introduce new products and enhance its sales infrastructure across the country. The company currently has an installed production capacity of 40,000 units a month at its Dharwad facility.
Jaibir Siwach, CEO of Kabira Mobility, stated "Electric bikes are set to be the catalyst for growth in the industry and with this investment, we are poised to lead the charge. We aim to capture almost 30 percent of the electric bike segment and emerge as an industry leader in the next two years.” He also said the production capacity of the current facility in Karnataka could be enhanced to 60,000 units a month.
Also read: Tube Investments' EV arm gets Rs 1,200 crore investment from Multiples PE
Out of the total earmarked outlay, both partners will be spending Rs 300 crore to set up a manufacturing facility in Uttar Pradesh’s Jewar to cater to the North Indian market. The remaining amount will be spent towards enhancing its manufacturing capacity at its Dharwad plant in Karnataka
"We are also looking to set up a new manufacturing facility around Jewar in Uttar Pradesh with an installed capacity of 1.25 lakh units a month," he noted. He also stated that the company will go in for another round of fund raise by the end of the year.
Kabira Mobility revealed that the new manufacturing plant, with a capacity of 120,000 units per month, will be spread over 50 acres of land, will have eight assembly lines and will also have a fully automated battery pack assembly and testing line apart from the inventory management system and robotic chassis welding line. Siwach stated that this new facility is expected to generate direct and indirect employment opportunities for 7,000 individuals.
In the long term, Kabira Mobility is aiming to have an annual production capacity of 14.4 lakh units in the North Indian plant and 4.8 lakh units in the South Indian plant. In addition, the company is planning to ramp up its store network from 30 to 100 outlets by the end of the year.
Also read: Mobility startups shift gears from bicycles to e-scooters
Manoj George, CEO of Al-Abdulla group, stated, "India holds immense potential and is poised to become the manufacturing hub for the global E2W market. Our investment in Kabira Mobility is aligned with Al-Abdulla group's vision of investing in the renewable energy sector and supporting sustainable mobility solutions on a global scale.”
Kabira Mobility, which currently retails two electric motorcycles- KM3000 and KM4000-will also be introducing a range of new products such as the KM5000, an electric cruiser bike with a range of 330km. In addition to this, the Pro variants of the KM3000 and KM4000, featuring mid-drive powertrain and industry-leading specs, will also be released. (With inputs from PTI) ($1= Rs 82.6)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
