Sedemac Mechatronics raises $100 million from A91, Xponentia and 360 ONE Asset

Incubated in a lab at the Indian Institute of Technology-Bombay (IIT-B) Sedemac has development and manufacturing facilities in Pune.

Pune-based Sedemac Mechatronics, an auto parts and powertrain controls manufacturing firm, announced raising $100 million led by led by Xponentia Capital Partners, A91 Partners and 360 ONE Asset at a valuation of $230 million, the firm said in a statement on May 30.

Moneycontrol was the first to report about Sedemac's $100 million fundraise in April.

Out of the total funding, around $9 million of investment will go into building a new manufacturing plant.

"The funding will also go into adding financial cushion towards pursuit of significant growth prospects in India, the US, and the EU," the firm said in a media statement on May 30.

The investment has led to the full exit of the company’s first institutional investor Nexus Venture Partners as well as complete exits of investors TR Capital and Montane Ventures.

The secondary transactions have together led to an infusion of $9 million into the company's coffers at a vaulation of $260 million, the firm said in a statement.

Incubated in a lab at the Indian Institute of Technology-Bombay (IIT-B) Sedemac has development and manufacturing facilities in Pune.

Sedemac Mechatronics, an acronym for Separating Decision Making from Actuation, the principle behind mechatronics, the technology that combines electronics and mechanical engineering, was founded in 2007 by Shashikanth Suryanarayanan along with his students, Pushkaraj Panse, Amit Dixit and Manish Sharma.

Surayanarayan is an associate professor in the mechanical engineering department of IIT-Bombay. He completed his PhD from the University of California, Berkeley, and worked in the US for six years. He returned to India in 2004 and joined IIT-Bombay.

Sedemac makes critical components used to help generate power in automotive vehicles. The firm’s products are used in small engines, electric vehicles and e-bikes.

The firm employs more than 500 people and serves top OEMs in India, including Hero Motocorp, Mahindra and TVS. The firm has a development centre and two manufacturing plants in India.

In 2017, the firm raised around $7.5 million in funding from Infosys cofounder Nandan Nilekani as well as from existing investor Nexus Venture Partners and India Innovation Fund.

In 2018, Sedemac reportedly raised around $8 million from Iron Pillar.

“We are very excited to join SEDEMAC’s journey of technologyled innovation and excellence. The SEDEMAC leadership is building an extraordinary business leveraging India's engineering talent to create IP catering to large markets," said Bhavya Kapoor, MD at Xponentia Capital.