Eka Mobility Secures Second Tranche Investment From Japan’s Mitsui To Promote EV Ecosystem In India

Eka Mobility has announced getting a second tranche of investment from Japan's Mitsui investment company. It is a part of the initially announced phased investment by Mitsui to create Eka a leading global OEM in India.

Key Highlights

• The strategic long-term collaboration among Eka, Mitsui, and VDL Groep covers the equity partnership, phased investment, and technology transfer to Eka Mobility.
• Eka Mobility has secured a second tranche investment from Mitsui & Co., Ltd. to finance continuing operations, supply chain improvements, and market expansion.
• The maiden investment by Mitsui earlier this year helped Eka Mobility to develop a large R&D facility for electric commercial vehicles in India.

The Pune-based EV (electric vehicle) startup, Eka Mobility, secured a second tranche investment from Mitsui company which is known for having a rich history of contributing to industrial innovation. In December 2023, Eka (Pinnacle Mobility Solutions), Mitsui, and VDL Groep entered into a strategic partnership with a long-term vision, including a joint investment of USD 100 million (about Rs 850 crores) in phases, equity, and technology cooperation.  

To create a global OEM (original equipment manufacturer) in India, Eka Mobility will get a strategic investment from Mitsui while VDL Groep, the leading Dutch technology and manufacturing company, will partner with Eka Mobility in equity and support the EV startup technologically. Let’s unfold the benefits provided by this collaboration.

Related Link: EKA Mobility Recently Unveiled EKA K1.5: Here Are The Details

Benefits To Eka Mobility (Pinnacle Mobility Solutions) 

As a part of this collaboration, VDL Bus & Coach, a division of VDL Groep and the industry leader in electric buses and coaches in Europe, will assist Eka Mobility by providing technology transfer so that electric buses can be manufactured in India for the Indian market. 

Mitsui's initial investment in Eka earlier this year helped the EV startup build one of the largest R&D (research and development) facilities for electric commercial vehicles in India, as well as to create new products and increase its export market share. The recently executed second tranche will supply working capital, broaden market reach, expedite new product development, and boost Eka Mobility's production capabilities. 

The investment will bolster the business's ability to fund ongoing operations, supply chain improvements, and market expansion plans. With this strategic collaboration, Eka has been leading the charge in the country's commercial electric mobility revolution. The startup has created a variety of electric light commercial vehicles, intercity coaches, and buses in the 7 m, 9 m, and 12 m lengths. 

Additionally, Eka Mobility is one of the commercial vehicle manufacturers recognised by the Indian government's Auto PLI (production-linked incentive) policy. Mitsui's decision to increase its investment shows how much it believes in the capabilities and market potential of Eka Mobility.

Comments By Mitsui And Eka Mobility

Hiroshi Takeuchi, Deputy General Manager – Mobility Business Unit 1, Mitsui, said, “We are thrilled to deepen our partnership with Eka Mobility through the investment of this second tranche. Eka Mobility has demonstrated strong growth and innovation in the EV space, and we are excited to support their continued success.” 

Further, he added, “We look forward to utilizing Mitsui's global network to promote exporting Eka's competitive products to overseas markets. This investment aligns with Mitsui's strategic focus on sustainable and forward-looking industries, and we are confident that Eka Mobility will play a pivotal role in the future of transportation.”

Sudhir Mehta, founder of Eka (Pinnacle Mobility Solutions), expressed his gratitude, “We are immensely grateful to Mitsui & VDL Groep for their unwavering confidence and sustained investment in Eka Mobility. The continued investment support will enable us to accelerate our growth trajectory, bring innovative EV solutions to market faster, and further our mission to create a sustainable and green transportation ecosystem. We look forward to a long and successful partnership with Mitsui & VDL.”

What We Think

The strategic long-term partnership with VDL Groep and Mitsui & Co., Ltd. will help Eka Mobility financially and technologically to be a leading global OEM in India. Eka Mobility will soon be positioned to significantly impact electric mobility as the need for sustainable transportation solutions increases both domestically and internationally. 

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